UE Medical Secures Tens of Millions in Strategic Investment from Advantech Capital to Advance Perioperative Visualization Solutions

VCBeat (WeChat ID: vcbeat) has learned that Zhejiang Youyi Medical Devices Co., Ltd. (“Youyi Medical”) recently secured a strategic investment of tens of millions of yuan from the Jiangsu Yida Achievement Innovation and Entrepreneurship Investment Fund (Limited Partnership), a fund under Yida Capital.

Zhejiang Youyi Medical Devices Co., Ltd., established in 2010, is a national high-tech enterprise engaged in the development of visualized medical devices. According to VCBeat, the company’s product portfolio is strategically centered on perioperative visualization solutions, with current offerings focused on airway management to address a series of clinical pain points encountered by physicians in this domain.

VCBeat learned that in 2016, Youyi Medical secured Series A financing from Tianjin TEDA. After two years of development, and with sufficient self-sustaining revenue capabilities, the company subsequently raised tens of millions of yuan from Yida Capital.

With sufficient internal capital generation capabilities, why did Youyi Medical pursue this round of financing? What are Youyi Medical’s next steps following the fundraising? And where do investors see Youyi Medical’s core competitiveness? To answer these questions, VCBeat conducted an exclusive interview with Xue Yi, a core team member of Youyi Medical and Business Partner at Yida Capital.

Core team members of Youyi Medical told VCBeat that in the medical device sector, a company’s self-sustaining financial capability and innovation capacity are crucial. Companies must establish robust business and financial models, with particular emphasis on R&D capabilities and marketing promotion. It is essential for enterprises to possess genuine expertise and deliver real value.

According to VCBeat, Zhejiang Youyi Medical Devices Co., Ltd.’s marketed products include video laryngoscopes, video rigid laryngoscopes, video flexible laryngoscopes, and video laryngeal masks. Among these, its video laryngoscopes have been adopted by more than 6,000 large and medium-sized hospitals across China, achieving a market share of over 70% and a coverage rate of more than 75% among Grade A tertiary hospitals.

The member stated that although Youyi Medical currently maintains healthy cash flow, capital support would further accelerate its development and facilitate a more strategic global industrial layout.

First, Youyi Medical will intensify its R&D efforts for visualization products, adhering to the philosophy of “from clinical practice, back to clinical practice,” to facilitate the commercialization of more translational medicine products and launch a greater number of solutions that meet clinical needs, thereby achieving significant growth in the fields of anesthesiology, emergency medicine, critical care, and respiratory care;

Second, Youyi Medical will invest in and strategically position itself around high-quality upstream and downstream projects to build an intelligent medical device industry chain platform, striving to achieve full-process visibility, intelligence, informatization, and data-driven management across the entire industry chain;

Third, Youyi Medical has consistently adhered to a marketing strategy driven by academic engagement. With capital support, the company will further increase its market investment to ensure that its high-quality products deliver their full value.

According to VCBeat, Zhejiang Youyi Medical Devices Co., Ltd. has been actively expanding into overseas markets since its inception. The company established a foreign trade center in Shanghai and set up an office in the United States, with its products exported to 35 countries and regions, including the United States, Germany, France, Italy, Belgium, and South Korea.

It is worth mentioning that Zhejiang Youyi Medical Devices Co., Ltd. has always prioritized the protection of its proprietary intellectual property rights. Currently, the company holds over 100 national patents and dozens of international invention patents.

Addor Capital’s management team began its investment operations in 1992. As of the end of November 2018, the team had established a total of 85 equity investment funds with diverse strategic focuses, managing assets under management (AUM) totaling RMB 93.7 billion. It has cumulatively invested in and supported 720 startup enterprises, facilitating the listing of 158 of these companies on domestic and international capital markets.

VCBeat has learned that in recent years, Yida Capital has cumulatively invested in over 40 healthcare companies, with total investment exceeding RMB 1.4 billion. These investments are primarily concentrated in various sub-sectors, including biopharmaceuticals, medical services, innovative medical devices, and precision medicine.

“We are honored to have formed a connection with Youyi Medical and become long-term partners.” Xue Yi stated that Yida Capital’s core reasons for investing in Youyi Medical are as follows:

First, Youyi Medical boasts a stable core team of over 60 key personnel. Through an “equity incentive” system, this core team has been united into a cohesive force. The team members have established deep collaborations with clinical experts, achieving notable success in translational medicine.

Second, Zhejiang Youyi Medical Devices Co., Ltd. has made substantial R&D investments in the field of perioperative visualization medical devices and has focused on this sector for nearly a decade;

Third, Yida Capital endorses the strategic direction chosen by Youyi Medical.

Following its investment in Zhejiang Youyi Medical Devices Co., Ltd., Yida Capital will not only provide financial support but also offer assistance in corporate governance and securities-related matters. Yida Capital and Zhejiang Youyi Medical Devices will jointly pursue in-depth strategic deployment in the field of medical device visualization.

Through this collaboration between Youyi Medical and Yida Capital, both parties will leverage their respective strengths to strive to establish Youyi Medical as a world-class enterprise in the field of visualized medical devices.