ByteDance completes $369 million fund raising for AI drug unit after its spin-off, sources say
Anew Labs has achieved a valuation of US$1.5 billion, a source said.
HONG KONG - Chinese technology giant ByteDance has completed a $290 million (S$369 million) funding round for its AI-driven drug discovery unit, Anew Labs, following its spin-off from the parent company, according to sources on September 16. Anew Labs, based in Shanghai, utilizes artificial intelligence for drug development and has achieved a valuation of $1.5 billion after its initial public offering, a source revealed.
The funding round was spearheaded by HSG, the previous Sequoia China, IDG Capital, and Hillhouse Investment, with 5Y Capital serving as a co-lead investor. Other participants included Gaorong Ventures, Primavera Venture Partners, Boyu Capital, SBP Group, and the Shanghai Future Industries Fund, all of which were disclosed under the condition of anonymity due to the information's non-public status.
ByteDance's decision to spin off Anew Labs aims to bolster the company's long-term growth prospects, as the AI drug discovery industry operates under different dynamics and management styles compared to ByteDance's core business. Following the funding round, ByteDance will retain a 56% stake in the venture, according to one of the sources.
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