Linjia Haoyi Completes Tens of Millions RMB Series A Funding to Expand Clinic Network and Strengthen Medical Team

Recently, VCBeat (WeChat ID: vcbeat) learned that Linjia Haoyi, a novel community healthcare service provider, announced the completion of its Series A financing round, raising tens of millions of yuan. The round was led by Genesis Capital, with participation from Shulan Healthcare, Kaifeng Venture Capital, and other institutions.

Luo Lin, Founder and CEO of Linjia Haoyi

According to Luo Lin, Founder and CEO of Linjia Haoyi, the next key focus following this round of financing is to establish 20 new chain clinics and recruit 100 full-time physicians.

Since Neighbor Good Doctor, a family clinic specializing in pediatrics, launched in Hangzhou on July 9, 2017, with the ambition of becoming the “7-Eleven” of community healthcare, how have users evaluated its services? And how does the investment community view this latest funding round?

To this end, VCBeat conducted exclusive interviews with Chen Jie, Founding Partner of Yuansheng Venture Capital; Zheng Jie, President of Shulan Healthcare Group; and Wen Gang, Partner at Kaifeng Ventures, to share their perspectives on Linjia Haoyi.

In the field of community healthcare, it is relatively difficult for clinics to continuously expand and build new facilities. This is because such expansion demands high standards in project management standardization, talent reserves, and other critical areas. So, what gives Linjia Haoyi the confidence to sustain its continuous expansion?

“We have established a relatively comprehensive set of standard operating procedures (SOPs) for the operation of new-type community healthcare services, with the documented experience exceeding 100,000 words,” Luo Lin told reporters. He identified four key benefits:

First, it shortened the preparation time for outpatient clinics and reduced operational costs; second, it implemented a scientific and personalized nurse-physician collaboration mechanism; third, it optimized diagnosis, treatment, and service workflows; and fourth, it strengthened job responsibilities and personnel development.

In promoting the chain-based replication model, he also proposed the “Three Strategies” and the “Three Builds.”

Strategically, he aims to build a strategy centered on talent development, brand building, and refined operations. This involves establishing a pipeline for young physicians while enhancing the capabilities of early- and mid-career doctors; developing a regionalized brand with a product positioning that is “effective, convenient, and immediate”; and upholding medical quality as the top priority, continuously optimizing procedural services, and fostering a company-wide mindset where “every employee is an operator.”

Leveraging its robust R&D team, Linjia Haoyi utilizes big data to quantitatively analyze operational outcomes and develop predictive analytics models. Through standardized information system processes, it achieves centralized management of its chain clinics. The company optimizes pharmaceutical procurement workflows and implements automated accounting functions to enhance the profit margins of medical products. By enabling intelligent diagnostics to mitigate medical risks, improving family health record management, and establishing a follow-up center focused on customer satisfaction, Linjia Haoyi serves as a trusted family physician, delivering personalized and professional medical services. Furthermore, it integrates with the Hospital Information Systems (HIS) of large general hospitals, such as Shulan Hospital, to refine two-way referral services across the upstream and downstream care continuum. This integration ensures seamless electronic medical record (EMR) connectivity, facilitates full-process digital patient management, and ultimately enhances user satisfaction and the continuity of medical care.

In terms of the “Three Builds,” the focus is primarily on culture, medical care, and service. By further engaging with Taiwanese partners and implementing internal honor-based incentive mechanisms, he has fostered a doctor-patient relationship atmosphere characterized by the principle of “treating patients as family.” Leveraging existing advantages in specialized expert resources, he has robustly established a professional medical system that integrates general practice with specialty care, emphasizing “strong pediatric specialties to safeguard overall family health.” Furthermore, while effectively addressing the healthcare needs of neighborhood residents, he continues to build a community medical service model that is “neither pretentious nor casual.”

Luo Lin summarized the core philosophy of Neighborly Good Doctor in one sentence: “Make healthcare warm and trustworthy, services easily accessible, and prices fair and reasonable.”

So, how do users evaluate Linjia Haoyi? To find out, VCBeat interviewed the medical team at Linjia Haoyi as well as patients. According to Dr. Zhan, joining “Linjia Haoyi” felt like reuniting with a long-lost friend. Here, “treating patients like family” is far more than just a slogan; genuine enthusiasm drives healthcare providers to regard pediatric patients as their own children and all patients as their own relatives, ensuring they receive scientifically sound care and warm emotional support throughout the pre-, intra-, and post-treatment phases. The path of primary healthcare will not grow narrower; rather, it will gain recognition and acceptance thanks to our excellence.

In terms of nursing care, Head Nurse Wang believes that because Linjia Haoyi’s nursing home strives to standardize and regulate its infection control practices, establishing its own quality control inspection and training system, it has laid the groundwork for timely feedback and corrective actions upon identifying issues. She joined Linjia Haoyi, where everyone works toward a shared vision: “Making healthcare accessible, warm, and trustworthy.”

“Here, we put into practice what we have learned, contemplated, and aspired to achieve. Each recognition serves as motivation for our continued progress! I am proud to be a member of Linjia Haoyi and will continue to work diligently with the team for our shared cause,” stated Head Nurse Wang.

She still vividly remembers a particular patient. In the past, whenever her child developed a fever, the entire family would be so anxious that they couldn’t sleep. Now, with guidance from Neighborly Good Doctors on the proper use of antipyretics and rapid turnaround times for laboratory tests, she no longer needs to make frequent trips to tertiary hospitals. This has significantly boosted her confidence in having a second child.

In the process of providing medical services to community residents, Luo Lin believes that the current stage features “favorable timing, advantageous location, and harmonious human relations.”Against the backdrop of China’s tiered diagnosis and treatment policy, this model aligns with the market trend of consumption upgrading. Rooted in Hangzhou, Zhejiang Province, within the Yangtze River Delta region, it benefits from a superior domestic environment characterized by favorable policies, vibrant market dynamics, and a strong entrepreneurial atmosphere. With the liberalization of multi-site and independent practice privileges, and growing recognition of private healthcare both within and outside the industry, conscious physicians from public institutions are increasingly choosing to provide services at private medical facilities. Moreover, more young doctors are viewing new community-based private healthcare as a viable career path. Coupled with the founding team’s over ten years of industry experience spanning internet healthcare, pharmaceutical supply chain and retail, and other medical services, the prospects are highly promising.

He noted that over the past two years, primary healthcare has garnered increasing attention. Linjia Haoyi has received strong support from government regulatory authorities and significant assistance from industry peers, which has further enhanced the value of their work and reinforced their commitment to serving a broader population.

In his work, Luo Lin frequently reflects on what clients want, what his team has to offer, and what areas in the existing market still need improvement.Resolve customers' healthcare needs at an appropriate price while ensuring a positive experience throughout the process,Such is his operational insight. As a result, they provided medical services to over 80,000 patient visits among surrounding residents in 2017, and are projected to serve 120,000 patient visits in 2018.

Going forward, he aims to ensure continuous medical quality while enhancing follow-up consultations and patient tracking, continuously optimizing the service workflow for patients upon their visit, and leveraging technology to drive advancements in healthcare.

“If you want to go fast, go alone; if you want to go far, go together.” Linjia Haoyi still has a long way to go on its development journey, and Luo Lin is actively strengthening cooperation both within and outside the industry. Externally, this includes other public and private medical institutions, third-party laboratory and imaging centers, commercial insurance companies, real estate developers, and medical schools. Internally, new project teams have been established to enhance engagement and negotiations with potential partners.

From a capital perspective, how is Linjia Haoyi evaluated? As the lead investor in this round, why did Yuansheng Venture Capital invest in Linjia Haoyi, and what aspects of the company did it value most?

Yuansheng Venture Capital is a professional investment firm focused on the healthcare and medical industry, participating in Linjia Haoyi’s Series A financing round as the lead investor. Chen Jie, Founding Partner of Yuansheng Venture Capital, stated that they are optimistic about the new community healthcare market targeted by the company. Additionally, the youth, strong execution capabilities, and enterprising spirit of Linjia Haoyi’s founding team left a deep impression on them.

YuanSheng Venture Capital focuses on early- and growth-stage investments in the healthcare sector, prioritizing companies with strong market potential, robust technological capabilities, outstanding and ethical founding teams, reasonable valuations, and manageable risks.Chen Jie’s rationale for investing in Linjia Haoyi is “new first-tier cities, the new middle class, and a new model for primary healthcare.”

From Chen Jie’s perspective, operating community healthcare still faces three major challenges. On the supply side: how to recruit high-quality nurses and physicians; on the demand side: how to build patient trust; and in terms of scale expansion: how to ensure that management systems and talent pipelines keep pace during replication, without compromising service quality.

Linjia Haoyi has excelled in these three areas: it boasts a strong team of physician partners and nursing quality control professionals, has established its own talent pipeline, and possesses over a decade of experience in physician collaboration. It has resolved customer acquisition challenges through strategic site selection. Furthermore, its in-house informatization systems (including SaaS), supply chain resource management, and well-developed SOP management processes have laid a solid managerial foundation for scalable expansion.

He stated that emerging first-tier cities like Hangzhou are witnessing a massive influx of young residents, representing a market with explosive growth potential. Moreover, individuals born in the late 1980s and 1990s have become the primary drivers of both production and consumption, serving as the core demographic in these emerging first-tier cities.Neighbor Doctor’s model precisely aligns with such market and customer demands, backed by a highly execution-capable team to implement it. As the tiered diagnosis and treatment system continues to advance, the value of primary healthcare as a channel will further increase. At that time, possessing this base of customers, characterized by both quality and quantity, will become Neighbor Doctor’s greatest asset.

He still remembers that during his interactions with Linjia Haoyi, what impressed him most was that although other institutions had already issued term sheets (TS), some even offering higher valuations, the founding team recognized the value Yuansheng could bring to the company and its extensive experience in healthcare investment, and thus chose to partner with Yuansheng. He was most impressed by the team’s ability to discern and select the right investors. Additionally, throughout the investment process, he found Luo Lin’s team, despite their youth, to be steady, motivated, and energetic.

In the future, he hopes that Linjia Haoyi will maintain its current rational and precise market positioning and efficient operational model, rapidly developing within a few years into a leading new-type community healthcare provider in East China and across the nation, thereby delivering high-quality, convenient, and affordable medical services to urban residents.

Against the backdrop of tiered diagnosis and treatment, Chen Jie believes that the primary healthcare market in China will enjoy substantial growth potential as healthcare reforms continue to deepen. On the other hand, given that the development of China’s healthcare industry is heavily influenced by policy, future opportunities in the primary healthcare market will undoubtedly emerge in areas that align with policy directions and meet the needs of the general public. Yuansheng will continue to explore investment opportunities in these sectors, helping more enterprises like Linjia Haoyi achieve rapid growth.

According to Zheng Jie, President of Shulan Healthcare Group, the investment in Linjia Haoyi is driven by two factors: confidence in Linjia Haoyi’s founding team, and Shulan Healthcare Group’s strategic objective, as a comprehensive healthcare group, to establish an efficient medical collaboration network with outstanding new community-based healthcare teams, thereby providing patients with more comprehensive and continuous medical services.

Junjie Fund, under the Shulan Medical Group, primarily invests in the broad life sciences sector, including emerging healthcare services, life technologies, medical big data, and AI. It forms an organic ecosystem with Shulan’s clinical medical platform, creating an interactive chain integrating clinical practice, scientific research, industry, and investment.

He believes that the team at Linjia Haoyi has accumulated valuable operational practices and experience in the fields of novel community healthcare services and information technology. The team’s entrepreneurial spirit, comprehensive operational capabilities, and vision to serve grassroots communities are highly regarded by Shulan Healthcare.

In addition to providing financial support to Linjia Haoyi, Zheng Jie stated, “We will establish a robust two-way referral system and a medical talent training program with Linjia Haoyi, while actively exploring advancements in healthcare informatics, patient data sharing, and continuous care services.”

Looking ahead, they are highly optimistic about the trajectory of community-based healthcare. The convenience and immediacy of medical services will become key factors influencing patients’ choice of healthcare providers. China’s privately operated, new-model community healthcare formats are poised to become diverse and multifaceted, currently standing at the early stage of an explosive growth window.

Kaifeng Venture Capital is an advocate of value investment, adhering to the philosophy of continuously increasing its stakes in valuable portfolio companies, rather than simply engaging in financial investment at a single stage. Its co-investment in Linjia Haoyi follows this same approach.

Wen Gang, a partner at Kaifeng Venture Capital, believes that there is significant room for improvement in primary healthcare. Both policy and market indicators are sending positive signals, and he is confident that within the next three to five years, certain enterprises will substantially transform the sector from its current state of poor service quality and low patient volume. After long-term comparison and screening of potential investments, he considers Linjia Haoyi well-positioned to become such a transformative enterprise.

Although the healthcare industry itself possesses a complex ecosystem, Kaifeng Ventures aims to establish a presence across key segments and domains of the industrial chain. By creating a closed-loop system within this chain, it seeks to provide additional assistance and support to its portfolio companies. Currently, Kaifeng Ventures leans toward early-stage investments in original drug developers, medical device manufacturers, and diagnostic companies with high technological barriers. Even though their R&D cycles are considerable, the firm believes that once many of these companies’ products reach the market, they will undoubtedly benefit grassroots physicians and patients.From this perspective, these enterprises will certainly have excellent opportunities for mutually beneficial cooperation with Linjia Haoyi, the only primary healthcare company currently invested in by Kaifeng.

He first engaged with Linjia Haoyi in 2016, when the team still exhibited a strong internet-oriented DNA and its services were more elitist and abstract. As the company’s strategy became increasingly clear, he clearly perceived that through monthly communications with the team, they had gained deeper understanding and mastery of grassroots healthcare services, delivering more solid and practical solutions. “By observing the patient service groups, I have been continually struck by patients’ expressions of gratitude for the quality care they received, and the frequency of such positive feedback has increased over time.” Wen Gang strongly concurs with this assessment.

He expressed surprise that the Linjia Haoyi team was able to master the essentials of primary healthcare services in just over a year.

Regarding the companies it has invested in, Wen Gang’s attitude is: “We respond to every request; we even offer help when no request is made.” Whenever something falls within their capabilities, they step in to assist. Since many members of the Kaifeng Capital investment team are seasoned industry veterans with valuable sector-specific resources, they maintain close and constructive communication with portfolio teams. When these teams have needs, Kaifeng readily shares its resources.

In particular, during the nearly two years since investing in Linjia Haoyi, Wen Gang has provided all the assistance he could in terms of introducing professional investors, connecting upstream and downstream resources, and offering strategic support. He believes that this team possesses a strong spirit of perseverance. Their initial meeting took place in a basic room at a Home Inn hotel. In fact, before embarking on their entrepreneurial journey, the core team members had enjoyed substantial incomes and promising stock option returns. However, to pursue this venture, they chose to leave behind their glamorous pasts, staying in modest accommodations while remaining full of passion. This convinced him that the team had significant potential for success.

He has long believed that there is significant room for improvement in primary healthcare, and that companies will inevitably emerge to transform this sector within the next three to five years. He is confident that Linjia Haoyi has the opportunity to become a novel medical service and technology enterprise with extensive coverage of urban households, earning public trust, ensuring affordability, delivering post-consultation satisfaction, and becoming indispensable to people’s lives.