In 2022, China’s medical device financing reached 638 times, and R&D and production enterprises invested and financed more than 80% of the time, and in vitro diagnosis was the leading investment

01.2022 financing overview

1. Financing reached 638 times in the year, and the number of financing events reached the peak in January

From the financing frequency (excluding IPO, merger and acquisition, equity financing, the same below), there were 638 financing events in the medical device field in 2022, which was 19.95% lower than that in 2021. From the time distribution of financing times, the financing events in the medical device field in 2022 are mainly concentrated in the first quarter, with a total of 215 times.

2. Total financing in 2022 reached 26.89 billion yuan, with January topping the list

In terms of financing amount, the financing scale of medical device field in 2022 was 26.89 billion yuan. From the monthly distribution of financing amount, January ranked the first with a total financing amount of 4.161 billion yuan. Virtue Diagnostics Suzhou Co., Ltd. received the largest amount of funding ($100 million).

It is worth noting that in 2022, there were 166 financing events exceeding 100 million yuan, and no billion yuan financing events.

Figure 1.Number of large financing events of medical device enterprises in 2021-2022

Data Source：MDCLOUD

3. Round A became the concentrated point of investment and financing, and the amount and times of financing accounted for more than 30%

From the perspective of financing rounds, in 2022, the number of rounds A (including Pre-A round and A+round) and strategic investment and financing in the field of medical devices was more, 252 and 169 respectively. In terms of investment and financing amount, the investment amount in the medical device field in 2022 is mainly concentrated in Round A (including Pre-A round and A+ round), with the investment amount reaching 9.64 billion yuan.

02. Analysis of financing subdivision

1. The number of investment and financing of R&D and production enterprises accounted for more than 80%, and the number of investment in the field of in vitro diagnosis maintained the leading trend

In terms of the number of financing, investment and financing in the field of medical devices in 2022 mainly focused on R&D and production enterprises, with a total of 569 times of investment and financing, down 33.29% compared with 2021. In addition, in 2022, the investment and financing times of upstream supply chain enterprises, application service enterprises, business service enterprises and other types of enterprises decreased to varying degrees compared with 2021, while the investment and financing events of professional service institutions such as CRO and CMO slightly increased compared with 2021.

In terms of investment and financing segments of R&D and production enterprises, the top three financing segments in 2022 are in vitro diagnosis, therapeutic devices and high-value consumables, with 126, 98 and 92 financing times respectively, both of which are reduced compared with 2021.

2. The financing amount of operating service enterprises rose against the trend, and the total financing amount in the field of in vitro diagnosis accounted for more than 30%

From the perspective of total financing, in 2022, the total financing in the field of medical devices still mainly flowed to R&D and manufacturing enterprises. However, with the decrease in the amount of financing, the financing scale of each segment showed a significant reduction in 2022. Among them, in March 2022, Shanghai Lichidental, a business service enterprise, completed a new round of financing of more than 60 million US dollars.

In terms of investment and financing segments of R&D and production enterprises, the top three segments of total financing in 2022 were in vitro diagnosis, high-value consumables and therapeutic devices, with financing amounts of 8.423 billion yuan, 4.415 billion yuan and 4.374 billion yuan, respectively.

3. The field of in vitro diagnosis is still the main source of “gold absorption”, and high-value consumables startups attract much attention

In 2022, investment and financing in the medical device industry was mainly focused on such as in vitro diagnostics, therapeutic devices and high-value consumables. Most of the investment and financing in this type of track was at the stage of Series A (including Pre-A and A+) and strategic investment and financing, indicating investors’ recognition of the broad prospects in this type of segment and effective resource integration and optimization.

03.Head agency investment analysis

In 2022, the top ten investment institutions made 107 investments, accounting for 15.81% of the total investment in the field of medical devices. Specifically, Shenzhen Capital Group Company, Ltd., Yuanbio Venture Capital and BioTrack Capital were more active in the primary investment market of medical devices, making more than 10 investments each. Investment institutions such as Qiming Venture Partners, Shenzhen HTI and CICCC APITAL also ranked first, with 10 times of investment.

04.Distribution of regional financing heat

From the perspective of the geographical distribution of financing events in the field of medical devices, the number of financing events in Beijing, Suzhou and Shenzhen constituted the first echelon of financing highland, forming a fault leading edge.

From the perspective of the geographical distribution of financing amount in the field of medical devices, the total financing amount of Shanghai is far ahead, and Shenzhen, Suzhou and Hangzhou ranked the second echelon. Specifically, Shanghai ranked first in the country with a total financing amount of 6.737 billion yuan, while Shenzhen, Beijing, Suzhou and Hangzhou all have a financing scale of around 4 billion yuan, which is a gap from other cities on the list and forms the second tier.

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Source：Joinchain Digital Sceince，Joinchain Medical

Translated & edited :Bradyknows