Global Digital Health Funding Weekly: 11 Deals Surpass $130 Million as Key Players File IPOs
VCBeat Weekly Investment and Financing Report: From March 28 to April 3, there were a total of 11 financing events in the domestic and international internet healthcare sectors, involving a total financing amount exceeding $130 million.
It is reported that the major investment event in China’s internet healthcare sector this week was Alibaba Group’s RMB 225 million Series A investment in CR Wanliyun Medical, marking a notably high starting point for its financing. Meanwhile, the key international development was the University of Pittsburgh Medical Center (UPMC)’s investment in six additional medical innovation projects. This follows UPMC’s significant earlier commitment in early March 2016, when it led a $35 million financing round for medCPU.
Analysis of Hot Financing Projects in China
CR Wanyun Medical — Big Data Platform for Medical Imaging, Actively Deploying Tiered Diagnosis and Treatment
China Resources Wanli Cloud Medical is a healthcare informatics company under China Resources Wandong. Established in August 2009, the company specializes in a cloud-based big data platform for medical imaging, creating efficient and professional connections among primary care hospitals, patients, and specialists. It is committed to providing innovative imaging services to primary care hospitals and patients. Currently, China Resources Wanli Cloud Medical has secured RMB 225 million in Series A financing from Alibaba Group. Industry analysts believe that, given the resources currently held by AliHealth and Wanli Cloud, the two parties are highly likely to collaborate on the medical imaging platform, conducting business in B2B, C2B, and C2C models. China Resources Wandong stated that this cooperation with AliHealth is a significant move to leverage complementary advantages and achieve strategic synergies. In addition to securing development funding, China Resources Wanli Cloud Medical will also receive multi-faceted support from both shareholders in areas such as technology, operations, services, marketing, equipment, and branding.
Hangzhou Yiyao—Specializing in Intelligent Rational Drug Use Systems for Multi-Party Convenience
Hangzhou Yiyao, established in 2011, is a professional operational service provider specializing in clinical rational medication solutions. Leveraging its independently developed open-access knowledge base and system management platform for rational drug use, the company conducts collection and analysis of clinical medication information, intervention management, and statistical evaluation. It provides rational medication support services to health administrative departments, medical institutions, clinicians, pharmacists, and patients, thereby enhancing the safety, cost-effectiveness, and efficacy of medication. The rational medication knowledge base of Hangzhou Yiyao was led by senior frontline clinical pharmacy professionals in the industry and co-developed with the participation of more than 300 hospitals at secondary level or above. It encompasses usage rules and clinical experience for over 18,000 standard drugs covering 190,000 products, ensuring that medication knowledge closely aligns with and meets clinical needs. Currently, the project has secured hundred-million-yuan-level funding from CDH Investments.
Keling Medical — Committed to chronic disease health services, with an O2O mobile platform dedicated to the pharmacy sector
Keling Medical, established in October 2014, is a chronic disease health service company specializing in big data analysis of genomic information. Its subsidiary, Lanxinkang, is a chronic disease management app focused on the pharmacy sector. Keling Medical places significant emphasis on collaborating with chain pharmacies in its promotional efforts. In partnering with chain pharmacies, Keling Medical follows two approaches: first, direct collaboration with chain pharmacies; and second, establishing partnerships with chain pharmacies through multinational pharmaceutical companies.
Recently, the company secured RMB 25 million in Series A financing from Yongtai Technology and Yingke Capital.
Weiming Penguin: Leveraging a Third-Party Pharmaceutical Trading Platform as an Entry Point with Moderate Barriers
Founded in November 2015, Weiming Penguin is a startup that entered the “Internet + Healthcare” sector through a third-party trading platform for pharmaceuticals. The company is committed to shortening the pharmaceutical supply chain and building infrastructure for pharmaceutical commerce. Third-party trading platforms related to online pharmaceuticals possess moderate barriers to entry; currently, only 25 enterprises nationwide hold the required national-level qualifications. Among these 25 companies, none other than the Weiming Penguin team adopts the same business model. Recently, Weiming Penguin secured tens of millions of yuan in angel-round financing led by Matrix Partners China. This injection of capital will accelerate the company’s development.
Youyi Care – A Mobile Health Vertical Platform Focused on Oncology
Youyi CARE is a startup in the mobile health sector, established on July 15, 2015. The company is committed to building China’s most comprehensive online oncology service center, breaking down information asymmetry between oncologists and patients. By leveraging mobile internet technologies, it facilitates precise matching between oncology healthcare providers and patients, ensuring that cancer patients receive the most suitable and standardized treatment and care. The Youyi CARE mobile app has been launched, with over 2,000 oncologists and 4,000 cancer patients registered to date. The company has recently secured RMB 12 million in Series A financing from Jinmao Capital. This round of investment will primarily be used to expand the user base, upgrade products, and explore the practical implementation of sustainable business models in mobile health.
LinkDoc Technology—A Medical Big Data Company Dedicated to the Field of Oncology
LinkDoc Technology was established in December 2014, specializing in the integration of medical information systems and the development of application software. Its flagship product, LinkDoc, is a clinical data convergence system designed to connect patients with physicians. The company has currently established collaborative partnerships with over 200 of the leading oncology hospitals across China. It has collected, organized, and analyzed more than 400,000 patient cases, covering all tumor types and specialties, thereby securing a leading position in both technological reserves and business scale. LinkDoc Technology has successfully completed its Series B financing round, which was jointly led by OrbiMed Advisors, a fund focused on cross-border healthcare investments, together with other leading international and domestic funds.
Analysis of Hot Financing Projects Abroad
1. Quanterix Corporation—A Company Dedicated to High-Sensitivity Single-Molecule Detection Technology
Founded in 2007, Quanterix focuses on the fields of neurology, oncology, cardiology, inflammation, and influenza viruses. The company leverages liquid biopsy and other early detection technologies to monitor health before clinical symptoms manifest, thereby safeguarding against disease. Its single-molecule immunoassay technology enables multiplexed detection, a capability built upon its renowned Single Molecule Array (SiMoA) technology. SiMoA is currently the most sensitive immunoassay method available. Recently, Quanterix announced that it had secured $46 million in Series D financing.
2. Emulate—Dedicated to Human Simulation System Projects Based on R&D Chip Circuits
Emulate, headquartered in Cambridge, UK, offers human body simulation systems based on R&D chip circuits. The company’s bio-system simulation chips mimic the specific functions of human organs; these chips, about the size of a AA battery, can predict human drug responses. This lab-on-a-chip technology aims to improve the efficiency of in vitro testing experiments on animals or humans. The company raised $28.75 million in its Series B financing round and stated that it would use the funds to expand its chip product design portfolio.
3. Rhythm Company — Dreem Smart Headband, which can connect to a mobile app to monitor and improve users' sleep quality
Rythm, founded in July 2014, has developed a smart headband that tracks sleep patterns. This device connects to a mobile app and, upon detecting that the user has entered deep sleep, emits specialized sound waves transmitted through bone conduction to the brain. This technology effectively extends the duration of deep sleep, thereby monitoring and improving sleep quality. Dreem’s initial products are scheduled for release in 2017. Prioritizing user experience, the company will first launch 500 beta units to gather feedback and continuously refine the product. To date, the company has secured $4 million in funding.
4. Gauss Surgical—Developing an App to Detect Blood Loss During Surgery
Gauss Surgical, founded in 2012, offers a real-time mobile application for monitoring intraoperative blood loss. When physicians launch the app on an iPad, the device’s camera estimates patient blood loss by analyzing the amount of blood absorbed by surgical sponges and the total number of sponges used. The product received FDA clearance in 2014. Gauss Surgical has placed particular emphasis on the fields of obstetrics and burn surgery, and has established collaborations with multiple companies. Recently, the company secured $12.6 million in a new round of financing, which will be used to strengthen its sales force.
University of Pittsburgh Medical Center — Following its investment in Lantern, a San Francisco-based company, in early March 2016, UPMC has made additional investments in six more healthcare projects.
The University of Pittsburgh Medical Center (UPMC) is a leading non-profit healthcare system in the United States and one of the most renowned academic research medical centers in the country. UPMC holds an international leadership position in fields such as organ transplantation, neurosurgery, stem cell science and tissue engineering, and nanoscience. Recently, UPMC issued a statement announcing its plan to invest in six healthcare projects affiliated with the Pittsburgh Health Data Alliance. These projects are:
① Clinical Genomic Model Platform — A Precision Medicine Model Platform Established for Special Patient Populations and Specific Diseases
② MEDIvate—A Mobile App That Helps Users Update and Share Their Medication Lists in Real Time
③ TDI System—A system that provides oncologists with patients’ tumor genetic information
④ Fall Sentinel—A system for real-time monitoring of potential adverse drug reactions in patients after discharge to home
⑤ Pump—The software utilizes sensors from wearable devices and hospital beds to monitor patients' condition in real time.
⑥ ComPACD—A Software for Simplifying Imaging of Complex Cancers and Enabling Precise Diagnosis
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