Deltamed Medical Secures Tens of Millions in Series B Funding to Break Import Monopoly in Sports Medicine Devices

On April 17, VCBeat learned that Delta Medical, a Chinese company specializing in sports medicine products and sports rehabilitation services, has completed a Series B financing round worth tens of millions of RMB. The round was led by YuanBio Venture Capital, with participation from Boxing Capital. In September 2016, Delta Medical also secured tens of millions of RMB in Series A financing from Boxing Capital.

*Image provided by Delta Medical

Li Jianbo, Founder and General Manager of Delta Medical, stated: “This collaboration is crucial to Delta Medical’s strategic layout for the coming years. Delta will ramp up its R&D and production efforts in arthroscopic instruments, consumables, and equipment, enrich its product portfolio, enhance after-sales professional services, and establish sales networks across China and overseas markets.”

The discipline of modern sports medicine originally emerged from the treatment of athletic injuries, advocating for health promotion, disease prevention, and therapeutic intervention to help athletes return to their optimal pre-injury performance levels. As public awareness of fitness continues to grow, an increasing number of individuals are experiencing exercise-related conditions, such as ligament tears, meniscal tears, and joint wear. With rising expectations for quality of life, patients increasingly seek various treatment options after sports injuries to restore their pre-injury functional capacity. Although China’s focus on sports medicine started later than in Western countries, it has developed rapidly. Leading institutions, such as Peking University Third Hospital and Huashan Hospital, now see a substantial annual volume of patients in their sports medicine departments.

Sports medicine as a discipline and industry in China is currently experiencing rapid development. According to incomplete statistics, the number of arthroscopic surgeries performed in China was 240,000 in 2012 and rose to 760,000 in 2017, representing an increase of over 216%, with an average annual growth rate of approximately 26%.

China's sports medicine end-user market was valued at RMB 2.385 billion in 2012 and RMB 9.704 billion in 2017, representing a growth rate of over 306% and an annual growth rate exceeding 30%.

Despite rapid market growth, the Chinese sports medicine market remains dominated by imported products due to their first-mover advantage. The slow development of domestic brands was primarily constrained by technical barriers, limited market awareness, and lengthy product registration cycles. With the implementation of price caps under China’s national medical insurance system, domestically produced orthopedic products are gradually encroaching on the market share of imported brands. In 2015, China’s national strategy vigorously promoted the development of domestically manufactured medical devices, providing ample room for the future growth of the domestic sports medicine sector.

Beijing Delta Medical Science & Technology Corporation Ltd. has been deeply engaged in the field of sports medicine for nearly a decade, with experienced professionals leading its R&D, production, sales, and marketing operations. Technologically, it is one of the few domestic teams to have breakthroughs in core patented technologies. The company also offers personalized adjunctive therapies, integrating the latest international concepts with China’s specific conditions to provide services best suited for Chinese patients. Its core team consistently aligns with the forefront of academic advancements, ensuring the company’s rapid growth in the right direction.

It is reported that Delta Medical will take the lead in internationalizing Chinese-made sports medicine products this year, becoming the first domestic sports medicine company to expand into global markets. Guided by its mission to “Restore Healthy Living, Rejuvenate Vitality,” the company is committed to providing patients with premium sports medicine surgical and rehabilitation products and services, fostering robust relationships among the group, physicians, and patients, and helping patients access superior rehabilitation care.

Li Jianbo stated, “In recent years, sports medicine has experienced rapid development, driven not only by the broader trend of domestic substitution for imported products but also by continuous capital support. Our decision to partner with YuanBio Venture Capital and Boxing Capital in this financing round reflects our confidence in their dedicated focus on the healthcare sector, their extensive industry resources, and their experience in fostering innovative enterprises. Their philosophy aligns closely with that of Delta Medical, and they are well-positioned to help Delta Medical address its existing weaknesses.”

Wang Sheng, Partner at YuanBio Venture Capital, stated, “With the growing public awareness of sports and increasing attention paid to sports-related injuries, the industries related to sports medicine surgery and rehabilitation are poised for robust growth. Currently, there is a void in domestically produced solutions within this sector, presenting substantial opportunities for import substitution. Delta Medical is the first company to fully overcome the technical barriers in this industry and break the monopoly held by imported products. Furthermore, we are highly optimistic about Delta Medical’s ability to rapidly expand its market presence and accurately grasp industry trends. We firmly believe that Delta Medical will quickly emerge as the leading enterprise in this niche market. Investing in promising leaders within the healthcare sector aligns with our consistent investment philosophy, and we look forward to working alongside these outstanding enterprises to accelerate the development of China’s healthcare industry.”

Li Zhenming, Partner at Boxing Capital, stated, “Our fund made the Series A investment in Delta Medical and subsequently participated in multiple follow-on investments. We have also continued to participate in this Series B financing round. We are highly optimistic about the growth prospects of the sports medicine industry in China. After two years of comprehensive collaboration, we have full confidence in the exceptional execution capabilities and leadership of Delta Medical’s founding team. Delta Medical has integrated core elements across the entire sports medicine industry chain, including R&D, manufacturing, marketing, and services, thereby breaking the monopoly held by imported products. The company provides leading one-stop solutions for domestic physicians and patients while possessing the capability to expand into global markets. We warmly welcome YuanBio Venture Capital’s investment in Delta Medical! We are confident that Delta Medical will undoubtedly become a leading enterprise in China’s sports medicine industry.”

YuanBio Venture Capital is an investment firm specializing in early-stage and growth-stage healthcare and life sciences companies. Headquartered in bioBAY, it extends its reach across China and globally. The firm currently manages approximately RMB 3 billion alongside USD-denominated funds, has completed investments in nearly 50 high-quality projects, and focuses primarily on novel drug development, innovative medical devices, and precision medicine. YuanBio has delivered substantial investment returns and has been repeatedly recognized as one of the Top 10 venture capital funds in China’s healthcare sector and as one of the most active healthcare investors in China. By bringing together a team of seasoned professional investors and world-class scientific advisors, YuanBio leverages extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry. Through its focused strategy and rich industry resources, YuanBio is committed to becoming one of the most successful healthcare and pharmaceutical venture capital funds in China.

Boxing Capital is a specialized investment firm focused on early-stage healthcare investments, founded by partners with extensive experience in medical investing. The firm currently manages funds totaling nearly RMB 1 billion, with key investments in over 30 innovative medical device and healthcare service projects that hold significant market potential. Many of these portfolio companies have grown to become leaders in their respective sub-sectors, and the firm has successfully realized profitable exits from multiple investments. Boxing Capital’s limited partners include top-tier domestic fund-of-funds, healthcare industry entrepreneurs, and seasoned investors. Leveraging in-depth industry research, clear investment logic, and comprehensive post-investment management capabilities, Boxing Capital has earned the long-term respect of entrepreneurs and secured ongoing support from its investors, firmly establishing itself as a trusted long-term partner for leading healthcare entrepreneurs and investors in China.