Spring Rain Doctor Launches $45M Mobile Health Incubation Fund with Samsung Electric and Hainan Yedao

Early this year, rumors circulated in the market that Chunyu Doctor would leverage its own traffic to incubate early-stage projects in the internet healthcare sector. Recently, with announcements from two listed companies, Samsung Electric and Hainan Haiyao, Chunyu Doctor’s incubation initiatives have finally come to light:

Chunyu Doctor established a limited partnership investment firm named “Chunfeng Shili,” with Chunyu Doctor founder Zhang Rui, Vice President Bi Lei, and former Defu Fund investment manager Li Xiaomin serving as partners.

Sanxing Electric and Chunfeng Shili jointly established Chunfeng Bairun Investment Enterprise. The fundraising target for Phase I of the fund (Chunfeng Chuangxiang Mobile Healthcare Phase I) is RMB 300 million. Sanxing Electric, as a limited partner, has subscribed to RMB 50 million; Chunfeng Investment, as the general partner, has subscribed to RMB 3 million of the equity interest in Chunfeng Bairun; and Hainan Haiyao, as a limited partner, has subscribed to RMB 50 million. The term of the fund is five years.

Bi Lei told VCBeat that the follow-on investment fund would continue to bring in more LPs, adding, “The Haidian District Government is also in discussions with us regarding cooperation.”

Bi Lei, Vice President of Chunyu Doctors

This fund will primarily invest in mobile health startup teams with an innovative DNA, making equity or similar investments in companies operating in the healthcare and internet sectors, as well as their upstream and downstream affiliates. Regarding the fund’s operations, Bi Lei stated that management control rests with Chunyu, with Chunfeng Investment serving as the entity responsible for managing the fund. Furthermore, Chunyu Doctor will assist partners in identifying high-quality investment targets through “intellectual support.” “We have reviewed nearly all companies related to internet healthcare. We can provide corresponding assistance and concrete operational guidance on matters such as establishing valuation frameworks and ensuring the accuracy of relevant data when these companies engage with capital markets.”

As for how the existing resources of Sanxing Electric and Hainan Haiyao can achieve further synergy with Chunyu Doctor, Bi Lei stated that they are still exploring possibilities. “By investing in internet healthcare-related projects, traditional enterprises may be able to integrate these initiatives with their original industries, which also presents an opportunity for their transformation.”

Sanxing Electric: Founded in 1986 and affiliated with the AUX Group, Sanxing Electric is a provider of integrated solutions for smart power distribution and consumption, with sales revenue reaching RMB 2.8 billion in 2014. In its announcement, Sanxing Electric stated that establishing an investment fund would strengthen collaboration between its affiliated physical hospitals and Chunyu Doctor, creating a comprehensive “online + offline” service model. In March this year, Sanxing Electric planned to invest RMB 100 million to establish Ningbo AUX Medical Investment Management Co., Ltd., which will primarily engage in businesses such as entrusted hospital management. In June, Sanxing Electric proposed a private placement to raise approximately RMB 5.018 billion, aiming to consolidate its core business while expanding the operational scale of Fuzhou Hospital and constructing 300 primary healthcare institutions in Ningbo. These initiatives are designed to build a regional health and medical service platform integrating health management, remote monitoring, telemedicine, community rehabilitation, and wearable devices, thereby establishing a complete smart healthcare service industry chain.

Hainan Haiyao: A pharmaceutical company specializing in chemical drugs, with annual revenue of RMB 1.343 billion in 2014. Earlier this year, it made an equity investment in Chongqing Yade Technology, a company focused on healthcare informatization. On the same day it announced its partnership with Chunyu Doctor, Hainan Haiyao proposed to establish an investment fund with a subsidiary under Ping An Group, venturing into the commercial medical insurance sector.