China VC Weekly: Health and Medicine

Tencent-backed Waterdrop raises $200 million before possible IPO

Chinese Tencent-backed insurance tech company Waterdrop Inc. announced that it has raised roughly $200 million at a valuation of approximately $2 billion, according to sources familiar with the matter.

Specific investors have not been disclosed. However, it is known that the lead investor was an international insurance giant. Waterdrop will use proceeds of the investment round to fund its expansion in healthcare crowdfunding,

The Beijing-based company is reportedly seeking an initial public offering, other people familiar with the matter said last month. The proposed listing will include the firm’s main businesses – Waterdrop Insurance Mall, Waterdrop Mutual and Waterdrop Crowdfunding. Waterdrop is working with Goldman Sachs Group Inc. and Bank of America Corp. on the share sales.

According to sources, the company expects to go public by the end of this year or in early 2021. The latest IPO valuation is $4 to $6 billion. Although final decisions have yet to be made, the US is said to be among the top potential listing places.

About Waterdrop

Founded by Shen Peng, a former Meituan employee, in 2016, Waterdrop provides insurance services as well as medical funding assistance for low- and middle-income patients. Over the last four years, the company has been rapidly expanding in China’s third, fourth and fifth-tier cities.

Cardiac device maker Hanyu Medical bags 500 million yuan in recent financing round

Chinese high-end cardiac device manufacturer Hanyu Medical has raised 500 million yuan ($72.05 million) in its recent series D round of financing co-led by Highlight Capital, CITIC Private Equity Funds Management, and Yingke PE. Other investors included ALAN AMC, Everest Capital, Mefund Capital, Orient Securities Capital Investment, TF Capital and Chunfeng Venture Capital.

The company has said that the proceeds of the round will be used to promote the launch of Valve Clamp as well as to ramp up research and development of new products.

The Shanghai-based company previously raised 100 million yuan in a round led by Yingke PE in December 2018.

About Hanyu Medical

Founded in 2016, Hanyu Medical became one of the first Chinese companies to develop, produce and sell transcatheter mitral valve repair devices. Hanyu Medical’s core product currently is Valve Clamp, a mitral valve interventional device, which is used for minimally invasive interventional treatment of mitral valve regurgitation diseases.

Medical device manufacturer Wallaby Medical closes Series B+ round of financing

Chinese medical device company Wallaby Medical has closed a series B+ round of financing worth hundreds of millions of yuan. The round was led by CITIC Medical and Health Fund. Several existing investors including Maison Capital, Qianhai Fund of Funds and Chang’an Capital also participated in the round.

The company will use the raised funds mainly to promote the development of the company’s hemorrhagic and ischemic stroke treatment products, to accelerate expansion into overseas markets such as Europe, America, Japan, and South America, as well as to support the company’s two ongoing clinical trials, and promote the two products that have already been approved and marketed in China.

About Wallaby Medical

Established in 2016, Wallaby Medical is a medical device company focused on developing and commercializing medical device products for treating heart deceases. China, and Asia as a whole, are the markets with the largest medical demand for stroke treatment products in the world due to the high incidence of strokes in the region. The company has so far established a headquarters and a production base in Shanghai Medical Valley, as well as a wholly-owned subsidiary research and development center in California, USA.