Spring Mountain in Sight: 2023 Future Healthcare Equity Investment Forum Successfully Concludes

On November 18, 2023, the 2023 Future Healthcare Equity Investment Forum and the 5th Future Healthcare Fund Partners (LP-GP) Summit were successfully held at the Taikang Training Institute in Changping, Beijing. Themed “Spring Mountains in Sight,” the forum invited over 30 distinguished guests, including experts in healthcare research, consulting, and industry; representatives of regional healthcare funds; and partners from top-tier global investment institutions. The event featured ten projects spanning pharmaceuticals and biotechnology, advanced intelligent manufacturing and medical devices, upstream pharmaceutical and device supply chain services, and early-stage innovation with technology transfer. With more than 200 industry professionals in attendance, participants jointly explored market trends under the new economic development landscape, engaged in dialogues on cutting-edge investment philosophies and logic, and gained in-depth insights into the progress of innovative healthcare projects.

Mr. Zhu Hengpeng, Deputy Director of the Institute of Economics at the Chinese Academy of Social SciencesKeynote Address: Pathways to Differentiated Innovation in HealthcareMr. Zhu Hengpeng proposed that the essence of medical, elderly, and health care is a profession defined by “to cure sometimes, to relieve often, and to comfort always,” with trust at its core. Future healthcare business models should pay greater attention to the post-1985 generation, who are the primary decision-makers for household healthcare spending. Emphasis should be placed on fostering the “general-specialist division and collaboration mechanism” (i.e., the tiered diagnosis and treatment system) driven by internet healthcare and specialized medical institutions. Additionally, networks of small clinics should be developed to provide convenient services, while commercial health insurance can play a significant role in supplementing gaps in government-funded healthcare coverage.

Ms. Xie Sijin, Executive Director of Beijing Changkejin Investment Co., Ltd.In the speech titled “Focusing on the Development of Pharmaceuticals and Healthcare, Upgrading Dimensions to Empower Ecosystem Partners,” Changping District’s industrial planning was introduced. Changping District will concentrate on building three major tracks—frontier technologies, high-end medical devices, and beauty and health—driven by the two core engines of biotechnology and digital technology, aiming to create the “Life Valley” with global leading standards and serve as the “nuclear explosion point” for Beijing’s pharmaceutical and healthcare industry. As a one-stop industrial ecosystem platform, Changping Development provides asset management, tech finance, and industrial services to support companies’ growth throughout their entire lifecycle. Currently, Changping Development manages fund-of-funds exceeding RMB 9 billion and has invested in over 1,100 projects. Furthermore, through basic and specialized industrial promotion services, it cultivates and enhances the independent innovation capabilities and core competitiveness of enterprises within its parks. By innovating the operational model of technology services, it establishes various specialized industrial service platforms to create conditions for the implementation and commercialization of corporate technological achievements, thereby driving industrial transformation and upgrading and comprehensively empowering ecosystem partners through dimensional upgrades.

Ms. Lu Jiaojiao, Partner at Chuangye Jieli**Spring Mountains in Sight: Early Investment Holds Promise**In her speech titled “Spring Mountains in Sight: Early Investment Holds Promise,” she analyzed the current hotspots and opportunities in early-stage investment within the biopharmaceutical sector from an investor’s perspective. She argued that as the biopharmaceutical industry returns to its commercial fundamentals, the timing is ripe for early-stage investment. However, early-stage biopharma investing currently faces significant challenges, including difficulties in fundraising, deal sourcing, portfolio management, and exits.How can these challenges be addressed? Regarding fundraising, she recommended a strategy of “leveraging core capital to attract supplementary capital,” seeking patient capital from Corporate Venture Capital (CVC) firms and government funds, while keeping financial returns as the core objective. After all, if project quality is poor, other demands from Limited Partners (LPs) cannot be met either. For investment, she advised “investing early and with smaller amounts,” maintaining observation through small initial tranches and continuously increasing stakes in high-growth projects to secure excess returns. In terms of management, she suggested “replacing control with support,” identifying high-quality projects through pre-investment services and post-investment due diligence. For exits, she proposed shifting “from virtual to real,” focusing more on M&A exit opportunities within industrial entities rather than pursuing later-stage financing rounds or IPOs in financial markets.Ms. Lu Jiaojiao also introduced that Shanghai Entrepreneurship Relay Technology & Finance Group has been active in the early-stage investment field for over a decade. The group manages both direct early-stage investment funds and funds of funds, serves as the custodian for the Shanghai Angel Investment Guidance Fund, is committed to supporting early-stage investment funds, and places particular emphasis on investing in scientific research service enterprises.

Mr. Cao Feng, Partner at Yingke CapitalDelivering a keynote address titled “Deepening Engagement in the Pharmaceutical and Healthcare Sector to Propel the Upgrading of Government-Led Pharmaceutical Industrial Systems,” Yingke Capital China, as a leading investment institution, has invested in over 100 leading biopharmaceutical enterprises, establishing a life sciences ecosystem with extensive coverage across specialized sub-sectors and synergistic industrial closed-loop collaboration. He noted that while biopharmaceutical investment in China is currently at a trough, this downturn is only temporary, driven by two major macroeconomic factors: population aging and increased government infrastructure spending. Thus, he remains bullish on the long-term prospects of the healthcare and wellness sector. Under China’s new economic normal, local governments face higher expectations; government guidance funds should transition toward market-oriented and professionalized operations, attracting social capital for collaborative efforts to jointly promote pharmaceutical industry development. Currently, Yingke Capital has actively partnered with multiple local governments to facilitate the establishment of industry leaders, achieving notable results. The firm looks forward to collaborating with more governments and institutions to fully leverage the role of capital in driving regional pharmaceutical industry upgrading.

Ms. Yu Fang, Partner at Northern Light Venture CapitalShe delivered a speech titled “Judging Industry Health Beyond Investment Hype: Becoming Patient Capital that Empowers Medical Innovation,” in which she used extensive data analysis to identify four primary reasons for the current challenges facing healthcare investment in China. The decline in the number of funded projects and the cautious approach adopted by leading firms indicate that medical venture capital is undergoing unprecedented challenges. On one hand, she advised entrepreneurs currently at a “low point” to adjust their strategies and achieve self-sustainability through mechanisms such as licensing-in and expanding into overseas markets. On the other hand, with healthcare investment at an impasse, investors must maintain patience and conviction, remain committed to entrepreneurial innovation, and explore emerging markets. As future challenges coexist with opportunities, both investors and entrepreneurs must share the responsibility of remaining patient and agile, embracing challenges with an open mindset, and persistently driving progress in the healthcare sector.

Ma Rui, Partner at FreeS FundMr.Delivering a speech titled “Research-Driven, Innovation-Encouraged: Investment Trends and Observations in the Biotechnology Sector,” he argued that biotechnology represents the right direction for long-term investment. He outlined future trends in biotechnology as follows: 1) Future biotechnological advancements will feature both technological breakthroughs and commercial applications; 2) Under the “14th Five-Year Plan” for Bioeconomy Development, biology will permeate various industries; 3) The convergence of new biology with new tools will give rise to novel therapies; 4) R&D and measurement tools are gaining significant traction. Investors should maintain confidence and patience, strategically positioning their biotechnology investments around original and disruptive technologies. As long as business models remain sustainable, the current downturn in the primary market should not be seen as an obstacle. He firmly believes that biotechnology will be key to enhancing societal productivity.

Xiong Shuirou, Partner at Yuyin Medical FundMr.In the speech titled “New Hotspots and Opportunities in Healthcare Investment at the Innovation Watershed,” it was noted that although China’s healthcare investment sector currently faces challenges such as macroeconomic downturn, tighter regulations, market sluggishness, and a decline in innovation-driven entities, long-term prospects remain promising due to sustained growth in healthcare demand and market expansion, offering substantial room for innovation. Companies should adjust their strategies to acquire differentiated products through independent innovation or licensed-in partnerships. Investors, meanwhile, need to build a multi-dimensional investment framework, identify their areas of expertise and compatible business models, and seek out benchmark enterprises in fields such as innovative drugs, medical devices, and consumer healthcare. Investors and entrepreneurs should foster mutual trust and support, work together to navigate the current downturn, strengthen internal capabilities, and remain committed to advancing the healthcare industry.

After nearly one month of nominations and research, on November 18, 2023, the VB100 Awards Committee officially announced the results for the “2023 Future Healthcare Best Equity Investment Cases” and the “2023 Future Healthcare Most Popular Investment Institutions” at the 2023 Future Healthcare Equity Investment Forum.

Based on detailed, vivid, and specific primary research data, six cases each were ultimately selected as the most representative examples of investment, exit, and value-added empowerment performance for the year.These award-winning institutions have all completed landmark investment deals that have impacted the healthcare industry over the past year, demonstrating exceptional investment strategies, industry insights, and resilience.We believe that their success stories will serve as positive examples for the development of the healthcare industry.

Meanwhile, the selection process also identified, through nominations and voting, the ten healthcare equity investment firms most favored by innovative enterprises this year. This fully reflects the strong collaborative relationships established between the awarded institutions and innovative companies, as well as their solid reputation and significant appeal within healthcare innovation projects. These institutions have accumulated extensive industry experience in the healthcare sector and have earned recognition from entrepreneurs through their flexible investment strategies and comprehensive industrial resource support.

This selection process covered multiple key stages of equity investment in healthcare, identifying the most representative investment strategies and practical case studies. It will play a significant role in enhancing the vitality of the healthcare industry ecosystem and promoting high-quality development of the medical innovation sector.

This VBO roadshow targets four key sectors: pharmaceuticals and biotechnology, advanced intelligent manufacturing and medical devices, upstream pharmaceutical and device supply chain services, and early-stage innovation with technology transfer. Ten selected healthcare innovation projects are featured, as listed below:Weina Anke, Shudan Medical, Knowledge Matrix, Yuanjing Taike, Respuli, Aiwan Medicine, Jingchuang High-Dimension, Zhida Pharmaceutical, Saiyuan Biology, Zhengzhongji Medical.Roadshows leverage the investor resources gathered by the forum, with targeted invitations.Chen Chen, Founder and CEO of Summer Atlantic Capital; Ms. Fan Fangfang, Investment Partner of the Medical Division at Guoke Longhui; Mr. Li Yingjie, Executive Director of Inno Angel Fund; Mr. Su Zhiqiang, Executive Director of the Investment Department at AliHealth; Ms. Tian Min, Partner at Yuanjing Capital; Ms. Wang Xiaoyan, Managing Partner of GSR United Runpu Medical Fund; Mr. Wang Yi, Partner at Legend Star; Mr. Yang Zhiwen, Founding Partner of Nuoyu Capital; and Mr. Zhang Lehui, Operating Partner at Changling CapitalAs a panelist providing commentary on roadshow presentations, deliver in-depth critiques and diagnostic assessments of the showcased projects.

Following the roadshow, the roundtable wasMs. Fan Fangfang, Investment Partner of the Medical Business Division at Guoke LonghuiHost,Ms. Tian Min, Partner at Yuanjing Capital; Ms. Wang Xiaoyan, Managing Partner of GSR United Runpu Medical Fund; Mr. Wang Yi, Partner at Legend Star; Mr. Yang Zhiwen, Founding Partner at Nuoyu Capital; and Mr. Zhang Lehui, Operating Partner at Changling CapitalParticipation: The roundtable primarily discussed the state of healthcare investment in 2023, shifts in investment logic amid challenges, investment highlights in innovative drugs, medical devices, and digital health, perspectives on the trend of early-stage and small-scale investing, and the key corporate attributes valued by investors.At the conclusion of the roundtable, the panelists extended encouragement and well wishes to numerous entrepreneurs and investors, urging them to maintain confidence, weather the winter, and look forward to brighter prospects and new opportunities on the horizon.

·Media Partners·