ByteDance completes $290 million fundraising for AI drug unit after its spin-off, sources say

HONG KONG, Sept 16 — Chinese social media and internet company ByteDance has ​completed a $290 million fundraising for its AI drugmaking unit after spinning it off from the group, two people with ‌knowledge of the matter said on Wednesday.

Shanghai-headquartered Anew Labs, which uses AI for drug ⁠discovery, has achieved a valuation of $1.5 ​billion after its inaugural external ⁠fundraising, said one of the sources.

The fundraising was led by ‌HSG, formerly known as ‌Sequoia China, IDG Capital and GL Ventures, the venture arm ⁠of Hillhouse Investment, the sources said, ⁠adding that 5Y Capital was a co-lead investor.

Other investors included Gaorong Ventures, Primavera Venture Partners, Boyu Capital as well as strategic investor SBP Group and state-backed Shanghai Future Industries Fund, the sources said, speaking on condition of anonymity as the information ‌is not public.

ByteDance and the investors did ​not immediately respond to requests for comment.

ByteDance spun off the AI drugmaker to better support its long-term development, as AI drug discovery follows a different industry logic and management approach from the group's core operations, said one of the sources.

ByteDance will maintain a 56% stake after the fundraising, said the second source.

Anew ​Labs runs a few platforms for biomolecular structure prediction and design, antibody ‌design and optimisation, ‌and drug ⁠discovery, according to its website.

As well as its Shanghai headquarters, it has offices in San Francisco and Singapore.

Its pipeline includes a small molecular drug, a drug targeting a protein on the surface of human ‌cells and two undisclosed ​target drugs, its website shows.

(Reporting by ‌Kane Wu in Hong ⁠Kong. Additional ​reporting by Yantoultra Ngui in Hong Kong. Editing by Muralikumar Anantharaman and ​Mark Potter)

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