Top Internet Healthcare Companies by Funding in China (2010–2014): A Financing Ranking and Product Overview

The internet has spawned a vast array of new medical products and revolutionized traditional healthcare paradigms, driving rapid development across all sectors of the digital health industry. Correspondingly, a number of digital health companies have secured funding and continue to forge ahead. Meanwhile, a cohort of startups has emerged from scratch. VCBeat’s previous report, “2010–2014 YTD Report on Investment and Financing in China’s Internet Healthcare Sector》ranked the companies that secured financing and compiled annual financing rankings.

Between 2010 and 2014, 95 companies secured financing, with 88 of them disclosing the amounts. On this list, Guahao.com/WeDoctor, a platform specializing in appointment registration and scheduling, raised the highest amount. It completed three rounds of financing from investors including Tencent Industrial Win-Win Fund, MorningSide Ventures, Fenghe Investment, and Cybernaut Investment, totaling approximately USD 200 million.

In 2014, 73 companies secured financing, with 66 of them disclosing their funding amounts, totaling $690.743 million. The top ten companies on this list remained virtually unchanged from the five-year ranking, indicating that the majority of large-scale financing was concentrated in 2014 amid surging interest in internet healthcare. Guahao.com ranked first, having raised $100 million from Tencent’s Industrial Win-Win Fund.

BGI Genomics, which was not included in the ranking, secured RMB 2 billion in investment from 19 institutional investors across three tranches in May and June. Its core business involves testing for disease-causing genes to determine whether an individual carries, suffers from, or is at risk of developing certain diseases. Another major financing deal this year involved Neusoft Group: in December, its subsidiary Shenyang Neusoft Medical Systems Co., Ltd. received a total investment of RMB 2.733 billion from Hony Capital, CPPIB, Goldman Sachs, Tonghe Capital, and Neusoft Holdings; another subsidiary, Neusoft Xikang Holdings Co., Ltd., obtained a capital increase totaling USD 170 million from Hony Capital, Goldman Sachs, Synergy Innovation, Xikang’s employee stock ownership platform, and Neusoft Holdings. Combined, these two financings amounted to RMB 3.785 billion, marking the largest single financing round in China’s healthcare industry to date.

In 2013, 29 companies secured financing, with 28 of them disclosing their funding amounts, totaling $211.86 million. The funded companies primarily spanned multiple sectors, including mobile health applications, integrated hardware and software solutions, mobile devices, health applications, and online communities. On this list, Meinian Onehealth Healthcare, which specializes in physical examination appointment services, raised the largest amount. In September, it secured RMB 300 million in Series B financing from Ping An Innovation Investment Fund, Cathay Private Equity Fund, and The Carlyle Group Asia. The top ten companies by funding amount were mainly concentrated in the fields of mobile health applications, health applications, and integrated hardware and software solutions.

In 2012, 12 companies secured financing, with nine of them disclosing the amounts, totaling $42.587 million. These companies primarily operated in fields such as mobile health applications, telemedicine, appointment scheduling, health apps, and online communities. Among those listed, DXY, a social media platform dedicated to the pharmaceutical and life sciences sectors, raised the largest amount, securing tens of millions of dollars in Series B funding from Shunwei Capital and DCM in December.

In 2011, seven companies secured financing, with six disclosing their funding amounts, totaling $18.427 million. These companies primarily operated in areas such as mobile health applications, mobile devices, and integrated hardware-software solutions. Among those listed, Haodf Online, a comprehensive medical services website, raised the highest amount, securing tens of millions of dollars in Series B financing in January.

In 2010, five companies secured financing, with four disclosing their funding amounts, totaling $25.733 million. These companies spanned sectors such as online communities, web portals, mobile health applications, and hospital management equipment. Topping the list in terms of funding amount was Guahao.com (Weiyi), which closed a tens-of-millions-of-dollars Series B round in December, led by F&H Investment and Cybernaut Investment.

Judging from the number of financed companies and funding amounts over the past five years, internet healthcare is quietly rising and preparing to stage an internet health spectacle. VCBeat looks forward to even more impressive performances in 2015. Dreamers, keep up the good work!

(Note: Large-scale financing deals and companies that are already publicly listed or have completed an IPO are excluded from the scope of this ranking.)

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