JuLu Medical Secures Tens of Millions of RMB in Pre-A Funding Led by Mifang Capital to Advance Cardiopulmonary Rehabilitation

VCBeat (WeChat ID: vcbeat) has learned that Beijing Julu Medical Management Consulting Co., Ltd. (“Julu Medical”) recently announced the completion of its Pre-A round financing, amounting to tens of millions of RMB. The round was led by Mifang Capital, with Tianyi Group participating as a co-investor, and existing shareholder Dan’en Capital continuing to increase its investment.

China’s rehabilitation medical market is currently valued at approximately RMB 20 billion (around RMB 15 per capita). In comparison, the U.S. rehabilitation medical market stands at USD 20 billion (around USD 80 per capita, excluding long-term care) or USD 200 billion (around USD 800 per capita, including long-term care), indicating substantial room for growth in China. In particular, hundreds of millions of chronic disease patients have needs for organ function rehabilitation, yet the market remains in its nascent stage, with the potential to exceed RMB 100 billion in the future. China’s rehabilitation industry has now entered a phase of comprehensive development. The government not only continues to focus on expanding coverage and increasing the number of rehabilitation institutions but also prioritizes improving the quality of care. On the basis of promoting overall development, greater emphasis is being placed on the coordination and sustainability of the rehabilitation sector.

Daily expenses at rehabilitation hospitals are significantly lower than those at general hospitals, while the rehabilitation services provided are more specialized. Professional rehabilitation services facilitate better and faster patient recovery, thereby reducing subsequent medical expenditures and fundamentally supporting national efforts to control healthcare insurance costs. In 2016, to further meet the basic medical rehabilitation needs of persons with disabilities and effectively reduce their financial burden for medical care, the National Health and Family Planning Commission, the China Disabled Persons’ Federation, and other departments jointly issued the “Notice on Including Additional Medical Rehabilitation Items in the Basic Medical Insurance Coverage.” Building upon the existing covered items, the number of rehabilitation medical services eligible for medical insurance reimbursement was increased from 9 in 2010 to 29.

China’s rehabilitation sector suffers from insufficient investment and a severe supply shortage, characterized by a scarcity of specialized professionals, a limited number of rehabilitation institutions, outdated treatment standards, and inadequate supporting equipment. Major domestic rehabilitation medical device companies concentrate their main products in a few specific niche segments, with most manufacturers focusing only on one or several types of devices. Coupled with the market being in its early growth stage and relatively mild industry competition, the field of cardiopulmonary and other organ-based rehabilitation remains a blue ocean. In terms of industry development trends, Chinese rehabilitation device suppliers have evolved from offering single products to product portfolios, and further to providing comprehensive solutions. These holistic solutions align precisely with clinical needs, integrate closely with clinical departments, and have become new profit growth drivers for hospitals. By meeting the one-time procurement needs of certain hospitals and organizations such as the China Disabled Persons’ Federation—thereby enhancing customer stickiness—suppliers have also significantly improved the sales efficiency of their products. Consequently, providers of comprehensive solutions are poised to become the mainstream in the industry’s future.

Julu Medical’s independently developed management systems and products address clinical needs, while the company possesses strong capabilities in medical technology delivery and rehabilitation department construction. Founder Xu Changjun brings extensive experience in frontline sales and team management, and Chief Medical Officer Liu Sa holds a Ph.D. in Rehabilitation Medicine and Therapy from Xiangya School of Medicine. Partners Zhou Xu and Sui Yanwei each have over ten years of experience in the healthcare industry. Through long-term accumulation, Julu Medical has collaborated with professional societies, academic leaders, and major tertiary hospitals in the field of cardiopulmonary rehabilitation to establish model programs that serve as training bases. The company provides comprehensive solutions—including talent placement, systematic management pathways, equipment, hardware facilities, operational plans, and staffing—to assist in the establishment of cardiopulmonary rehabilitation departments.

Regarding this round of financing, Xu Changjun, Chairman of Julu Medical, expressed gratitude to both new and existing shareholders for their trust in the company’s team. He stated that the raised funds would be allocated to market expansion and the development of model centers, aiming to further advance China’s rehabilitation industry and enable more patients to receive systematic rehabilitation treatment at an earlier stage.

Liang Zhanchao, Partner at Mifang Capital, stated, “We are optimistic about Julu Medical’s strong execution and implementation capabilities. The team has independently developed branded organ rehabilitation equipment and can integrate existing rehabilitation equipment resources. Their outstanding capabilities in key department development and talent training systems make them a comprehensive platform enterprise with core competitiveness.”

Jin Bi from the Investment Department of Tianyi Group believes that Julu Medical can gather top domestic experts to jointly build an international first-class chronic disease management technology system and service standards centered on “rehabilitation”, which is in line with the national advocacy of medical consortiums and tiered diagnosis and treatment policies. At the same time, Julu Medical can form a close connection with physical examination centers, providing comprehensive health management services for the vast customer base of physical examinations under Tianyi Group.

Xin Jifu, Managing Partner at Danen Capital, stated: “As Julu’s earliest institutional investor, we have witnessed its continuous process of trial-and-error and exploration in the rehabilitation sector. The entrepreneurial spirit, keen business acumen, and strong execution capabilities of the Julu team have given us great confidence.”

Mifang Capital focuses on investments in the pharmaceutical, healthcare, and life sciences sectors. It is a founding member of the Biopharmaceutical Professional Committee of the Beijing Venture Capital Alliance and the Shanghai Life Health Industry Investment Alliance. The management team possesses extensive industry expertise in pharmaceuticals and healthcare, along with rich experience in venture capital. Mifang Capital has completed investments in more than a dozen emerging biopharmaceutical companies, including TianGuangShi Bio, Jingzhun Medical, Bohui Ruijin, SinoMicro, Hanyu Medical, Ansong Technology, Jiajian Medicine, Weituo Biology, Lingke Pharmaceutical, and Zanrong Pharma.

Tianyi Group, formally known as Shanghai Tianyi Industrial Holding Group Co., Ltd., is a leading Chinese industrial and investment group centered on healthcare. Its core industrial platform, Meinian Onehealth Healthcare (SZ002044), is the largest listed professional health check-up and medical services group in China, as well as the world’s largest preventive medicine platform and gateway to health services. Tianyi Group also manages multiple industry funds, including Zhongwei and Zhongfu. These funds serve as the Group’s primary investment vehicles, initiated by Tianyi Group in partnership with renowned investment institutions across China dedicated to the healthcare sector. They focus exclusively on healthcare investments and have received capital participation from guidance funds sponsored by the National Development and Reform Commission, the Ministry of Science and Technology, and the Shanghai Municipal Government. Since 2004, these industry funds have successfully invested in more than 20 companies that have completed initial public offerings (IPOs), with the total market capitalization of companies within their ecosystem exceeding RMB 100 billion.

DanEn Capital, founded in 2012, is dedicated to identifying and investing in exceptional entrepreneurs. After years of development, DanEn Capital has evolved into a long-term value-oriented industrial investment firm driven by both its proprietary industries and external investments. It focuses on industrial internet upgrades, life sciences and healthcare, and emerging markets. Its investments in the life sciences sector span innovative drugs, medical devices, precision medicine, and healthcare services. The portfolio includes more than ten domestic and overseas companies such as Getein Biotech, Vazyme Biotech, Mingyi Zhonghe, Wucailu, Southeast Hengsheng Medical, Aptitude Medical, and Rescue Therapeutics. DanEn’s core management team comprises seasoned industry entrepreneurs with decades of experience, securities professionals, serial entrepreneurs, and experts from professional institutions. Team members have extensive experience in equity investment and possess rich resources and expertise in leveraging synergies between primary and secondary markets.