Cui Yutao's Yuxueyuan Secures $20 Million Series C Funding to Enhance O2O Child Health Management Ecosystem

Recently, Beijing Cui Yutao Children's Health Management Center Co., Ltd. announced that it had completed its Series C financing in December 2016, raising $20 million. The round was led by Vertex Venture Capital, with participation from Shuanghu Capital (a Series B investor) and Honghui Capital (the exclusive Series A investor). Haoyue Capital served as the exclusive financial advisor for this transaction. Following the successful opening of the Cui Yutao Yu Xueyuan Pediatric Clinic in November 2016, the funds will be used to enhance the online Yu Xueyuan APP and the offline Yu Xueyuan Pediatric Clinics, thereby improving the O2O (Online-to-Offline) management system for healthy parenting.

In late 2014, renowned Chinese pediatric expert Dr. Cui Yutao, along with CEO Shao Zongzong and COO Jiang Wei, co-founded Beijing Cui Yutao Children's Health Management Center Co., Ltd., the first company in China dedicated to child growth, development, and health management. Since its establishment, the company has completed three rounds of financing. Prior to this round, it secured several million US dollars in Series A funding from Honghui Capital in February 2015, and raised $10 million in Series B funding from Shuanghu Investment and Honghui Capital in early 2016. In terms of its business model, the company launched the "Yuxueyuan" APP as an online interactive platform, maintained continuous online-to-offline fan engagement, and experimented with television variety shows. Additionally, the first offline Cui Yutao Yuxueyuan Pediatric Clinic officially opened in late 2016.

Established and operated by Dr. Cui Yutao and his medical team in accordance with Chinese healthcare standards, the clinic is grounded in the natural parenting theory developed by Dr. Cui over his 30 years of clinical practice. Its services encompass pediatric wellness and common disease clinics, including specialized departments for pediatric dentistry and ophthalmology. The clinic also offers featured specialty clinics focusing on pediatric allergies, nutrition and gastrointestinal health, and psychological counseling, along with assessment and cranial orthotic helmet therapy for infant head shape abnormalities. Furthermore, the clinic has established a synergistic integration with the "Yuxueyuan" mobile app, earning high acclaim from parents.

It is noteworthy that Honghui Capital participated in all three consecutive funding rounds. In this regard, Zhao Gang, Founding Partner of Honghui Capital, stated, “We are honored to have supported the team’s development throughout the entire process. We believe that with the opening of Yuxueyuan’s offline clinics, the company and its team will be better positioned to serve every mother who is concerned about her child’s health and development.”

Zhuo Fumin, Chairman of Source Code Capital—a venture capital firm founded in 2000 that focuses on early- to mid-stage enterprises in China and the United States—stated, “The management of pediatric health medical services represents a bottleneck in China’s healthcare sector. The team led by Dr. Cui Yutao is committed to enhancing the standard of pediatric health service management. Leveraging mobile internet technology, they have implemented an integrated online-offline model for pediatric health management. Source Code Capital highly appreciates this innovation and is honored to serve as the lead investor in this funding round.”

Ms. Jin Jiong, Partner at VStar Capital responsible for healthcare investments, stated, “VStar Capital is committed to identifying future industry leaders in the healthcare sector. We provide full support to professional teams that effectively integrate mobile internet technologies, professional community building, and high-quality medical service capabilities. Our lead investment in Yu Xueyuan is driven by this investment thesis. We look forward to working with the team led by Dr. Cui Yutao to accelerate comprehensive online and offline expansion, delivering professional, high-quality, and science-based child health management and medical services to millions of families across China.”

Zhang Yan, CEO of Shuanghu Capital, stated regarding this collaboration: “Shuanghu Capital and Yu Xueyuan share similar values and aspirations. Our mutual understanding and respect, coupled with a deep comprehension of the essence of healthcare and an appreciation for the professional dedication of physicians, constitute the important foundation for our partnership. Yu Xueyuan’s commitment to placing healthcare institutions at the core, while upholding the authenticity and professional spirit of medical practitioners, gives us full confidence in our investment in the company.”

Regarding this collaboration, Shao Zongzong, CEO of Beijing Cui Yutao Children’s Health Management Center Co., Ltd., stated, “Regardless of capital and market conditions, we remain a company anchored in healthcare institutions. In our collaborations with investors, Yu Xueyuan has consistently maintained clear-headed and objective judgment.”