Home Ehome Health Secures Tens of Millions in Pre-A Funding to Build 'One-Minute Clinic' Diagnostic Solutions for Primary Care

Ehome Health Secures Tens of Millions in Pre-A Funding to Build 'One-Minute Clinic' Diagnostic Solutions for Primary Care

Aug 20, 2018 08:00 CST Updated 08:00

VCBeat (WeChat ID:vcbeat) learned that, recently,Hunan Yihong Health Technology Co., Ltd. (hereinafter referred to as ““Yihong Health”) announced the completion of a tens-of-millions-levelPre-Around of financing, led byAssociationStar of VCBeatandWyethCapitalCo-lead Investor, the funds willPrimarily used for market model validation and product research and development. The company previously2015secured angel-round financing jointly invested by Chengcun Investment and Kaicheng Venture Capital.

 

Yihong Health, established in November 2014, is a biotechnology company specializing in the integration of portable point-of-care testing (POCT) with mobile internet big data. It is dedicated to the research, development, and commercialization of technologies for home-based medical diagnosis and health monitoring in China.


微信截图_20180816164958.png

 

The company’s core team comprises a development team of three postdoctoral researchers (professors from top U.S. universities or research institutes), an advisory board consisting of two members of the U.S. National Academy of Sciences, and experienced implementation and sales teams. Hu Shuang, the founder and CEO, holds a Master’s degree in Biomedical Engineering from the State University of New York and is a co-founder of a Silicon Valley startup. He was previously named one of Hunan Province’s Top Ten Outstanding Young People. Yihong Health marks Hu Shuang’s third entrepreneurial venture; as he reflects on the hardships of entrepreneurship, he also marvels at his personal growth along the journey.

 

When discussing the original intention behind starting his business, Hu Shuang told VCBeat that in China, primary healthcare institutions are the most numerous capillaries of the entire medical system. Over the past 30 years, there have been no significant changes in diagnostic methods and service capabilities; diagnostics mainly rely on the "old trio" of stethoscopes, thermometers, and sphygmomanometers, while treatment heavily depends on antibiotics and large-volume intravenous infusions.

 

In recent years, to address the uneven distribution of medical resources in China, the government has vigorously promoted a tiered diagnosis and treatment system. However, primary healthcare institutions differ from large hospitals or major medical centers; they require products that are truly suited to their needs. Point-of-Care Testing (POCT) represents one viable direction, but low price alone is insufficient. Rapid enhancement of soft capabilities necessitates the adoption of AI-assisted diagnosis.

 

To this end, Yihong Health has launched its first AI-based auxiliary diagnostic device for primary care—PalmTest Portable Immune Colloidal Gold Mobile Analyzer. The product holds 7 invention patents (including 2 global patents), has been awarded 2 key projects by the Provincial Department of Science and Technology, and has obtained 3 international certifications.


yihong.png

 

The PalmTest Analyzer is available in two models: a desktop unit for use at clinics closest to patients’ homes, and a handheld device primarily intended for patient self-testing at home.

 

Compared with traditional medical devices, the Zhangzhongce desktop model is more akin to an internet-based product, delivering testing services through a “hardware + AI + SaaS + service account” model. Hu Shuang told VCBeat that the instruments, testing consumables, and intelligent analysis system provided by Yihong Health are all auxiliary tools; in fact, what is charged for each test is a service fee. After completing the test, users scan a QR code to make payment, and the detailed report is simultaneously synced to their mobile health records.

 

“Yihong Health provides clinics with a SaaS system, a channel-focused BI system, and a patient-facing personal app. These represent business extension advantages that traditional devices lack,” said Hu Shuang.Currently, Yihong Health is capable of conducting tests for multiple indicators, including inflammation differentiation (viral and bacterial infections), acute respiratory infections caused by pulmonary Mycoplasma or Chlamydia, female gonadal hormones (for preconception care, early pregnancy detection, and miscarriage prevention monitoring), cardiac biomarkers (early warning and monitoring for myocardial infarction and cerebral infarction), and rheumatoid arthritis.

 

Additionally, the handheld device represents an innovation by Yihong Health tailored for home-based scenarios. This means that patients can conduct tests for minor ailments at home, avoiding long queues at hospitals, and can also connect with online physicians for consultations.

 

Based on the above considerations, Yihong Health launches“AI + iPOCT” SolutionDesign diagnostic equipment suitable for widespread adoption in primary care clinics, and distribute these products to clinics through channel penetration. By integrating independently developed or co-developed testing instruments (such as those for complete blood count, blood biochemistry, and routine urinalysis), we aim to establish a “One-Minute Clinic” laboratory at the point of care. All test data are transmitted to cloud-based physicians, and AI-assisted diagnosis is employed to help both patients and doctors easily interpret test reports while providing scientific and rational medication recommendations.

 

According to Hu Shuang, Yihong Health has already expanded its reach to approximately 3,000 clinics and outpatient terminals within three months, with a target of 10,000 for this year. It is believed that this round of financing will help Yihong Health achieve its goal more rapidly.

 

Hu Shuang stated, “Legend Star has provided us with a broader technological perspective, while Qifu Capital has brought us market and channel resources. In the future, the company will leverage AI to create value for primary healthcare institutions and patients, addressing the shortage of high-quality medical resources at the grassroots level. We will actively respond to the trends of ‘Internet + Healthcare’ and ‘tiered diagnosis and treatment,’ gradually realizing our corporate vision of ‘making healthcare simpler.’ Meanwhile, we will more solidly and rapidly capture the traffic entry points in primary healthcare.”

 

The lead investor in this round, Legend Star, is an angel investment fund positioned as a deep incubator and early-stage investor, with a primary focus on healthcare, TMT, and artificial intelligence. Legend Star pays close attention to emerging markets driven by national policies, such as primary healthcare services, as well as the application of cross-disciplinary technologies in healthcare services, including data-driven precision medicine, the intelligentization of medical service equipment, and the AI-enabled transformation of diagnosis and treatment.

 

Wang Yi, Investment Director at Legend Star, stated that Yihong Health has provided a series of integrated POCT solutions tailored for primary care clinics, aiming to replace the “traditional trio” of diagnostic tools—stethoscopes, sphygmomanometers, and thermometers. By leveraging machine learning and cloud computing technologies, Yihong Health empowers primary care clinics to standardize common disease diagnosis, establish rational clinical pathways, and improve the accuracy of diagnosis and medication.

 

“Yihong Health is positioned as a diagnostic service platform for primary care clinics. We also hope to leverage Yihong’s presence to enter the primary healthcare services market and seize the growth opportunities in this sector. We have numerous investments in the POCT field, ranging from immunology to gene sequencing technologies, and we plan to expand Yihong’s product portfolio in the future.”


“Meanwhile, Yihong’s understanding of primary care service scenarios and its data feedback will further help partner companies refine their products. Yihong’s SaaS reporting system and sales data BI system can also support partners in enhancing their sales management and customer service. Primary healthcare is a booming market following the development of tertiary hospitals, and we believe it holds significant promise.”