New Unicorn Emerges: Fosun Pharma Invests $106 Million in Butterfly Network to Advance Smartphone-Based Ultrasound Imaging

VCBeat has learned that Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”, stock codes: 600196.SH, 02196.HK) recently completed the subscription for Series D preferred shares of Butterfly Network, Inc. (“BNI”) through its controlled subsidiary, Fosun Industrial (Hong Kong) Limited (“Fosun Industrial”), for a total consideration of approximately USD 106 million.

According to Fosun Pharma’s previous announcement, Fosun Industrial will subscribe for 10,321,324 shares of BNI’s Series D Preferred Stock, which is expected to account for approximately 8.33% of BNI’s total number of fully diluted shares upon completion of the issuance of Series D Preferred Stock (calculated on the basis that all subscriptions for the Series D Preferred Stock have been fully completed and all issued stock options have been fully exercised).

VCBeat has learned that Fosun Pharma and Fidelity Investments jointly led and participated in BNI’s latest funding round. Other investors included the Bill & Melinda Gates Foundation and previous-round investors, among others. Following this round, BNI’s total capital raised reached $350 million.

Image source: Provided by the company

Dr. Jonathan Rothberg, Founder and Executive Chairman of BNI, stated, “We are honored to announce that Fosun Pharma has invested $106 million in BNI. Fosun Pharma recognized early on the potential of BNI’s Ultrasound-on-chip™ technology to enable low-cost, whole-body ultrasound examinations using a single probe. With this financing, we will further enhance our technological advantages as the world’s first handheld, general-purpose whole-body ultrasound imaging system. We also look forward to our collaboration with Fosun Pharma.”

BNI was founded in 2011 and is one of the world’s leading developers of handheld ultrasound imaging devices, committed to spearheading the decentralization of medical imaging. Leveraging an ultrasound transducer system integrated onto a single chip, the Butterfly iQ ultrasound device connects directly to smartphones and displays images on the phone screen, offering users a personalized ultrasound imaging experience. Furthermore, by harnessing smartphone applications and internet technologies, the Butterfly iQ effectively enables features such as remote assistance, facilitating seamless, real-time collaboration and communication between general users and industry experts, as well as between primary healthcare institutions and large hospitals.

For over five decades, traditional ultrasound imaging systems have been based on the piezoelectric effect of piezoelectric crystal transducers. However, constrained by limited ultrasonic frequency ranges and high transducer manufacturing costs, these conventional devices have long been positioned as relatively high-end equipment requiring scheduled appointments, thus failing to become a routine tool for physicians akin to the stethoscope.

Image source: Provided by the company

Butterfly iQ has pioneered the launch of an ultrasound transducer integrated onto a single chip, based on a novel principle. Unlike traditional clinical ultrasound systems that rely on piezoelectric crystals, this innovation achieves qualitative breakthroughs in multiple dimensions, including ultrasound detection frequency range, imaging modes, instrument cost, and portability. By leveraging smartphones and telemedicine, it enables healthcare providers at the primary care level to access expert support from industry specialists, thereby driving a potential transformation in healthcare delivery models and ushering in a new era of medical practice.

Fosun Pharma fully recognizes the broad application prospects of handheld ultrasound devices across various clinical departments, including the substantial demand for medical imaging ranging from tertiary hospitals to primary healthcare institutions. Leveraging this collaboration with VBInsight, Fosun Pharma will uphold its philosophy of “Continuous Innovation, Enjoying Health” and work hand in hand with VBInsight to actively promote grassroots education and accessibility of ultrasound imaging technology, thereby meeting the public’s basic healthcare needs.

Wu Yifang, President and Chief Executive Officer of Fosun Pharma, stated, “BNI has brought about a revolution in medical imaging, making ultrasound technology more accessible, convenient, and affordable. This collaboration will help synergize with Fosun Pharma’s medical device business and create opportunities to promote our healthcare services, enhance the accessibility of medical care, and drive innovation in service delivery models.”

BNI is a medical health technology company dedicated to decentralizing medical imaging through full-stack engineering solutions that integrate both software and hardware. BNI has introduced the groundbreaking personal ultrasound product, iQ. As the world’s first single-probe, whole-body universal ultrasound imaging system, and leveraging its proprietary Ultrasound-on-Chip™ technology, BNI has invented the first personalized ultrasound device approved by the FDA for market release.

According to available information, BNI has offices in New York City, Palo Alto, and Guilford, Connecticut. Additionally, BNI is one of the portfolio companies of 4 Catalyzer, a life sciences incubator founded by Dr. Jonathan M. Rothberg. Dr. Rothberg is a pioneer of next-generation DNA sequencing technologies. In 2015, he was awarded the U.S. National Medal of Technology and Innovation for his groundbreaking work in the invention and commercialization of next-generation DNA sequencing technologies, which has enabled researchers worldwide to access genomic information more easily, rapidly, and cost-effectively.