ByteDance spins off AI drug discovery unit Anew Labs, raises $290 million at $1.5 billion valuation
ByteDance completed a $290 million funding round for its AI drug discovery unit Anew Labs, following its spin-off in June 2024. The Shanghai-based company reached a $1.5 billion valuation in its first external financing round, led by Sequoia China, IDG Capital, and Hillhouse Investment. ByteDance retains a 56% stake. The round included strategic investors SoftBank Group and the Shanghai Future Industry Fund.
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ByteDance Spins Off AI Drug Discovery Firm Anew Labs, Retains 56% Stake After $290M Round
ByteDance has completed a $290 million funding round for its spun-off AI drug discovery division, according to sources on September 16. The Shanghai-based company, Anew Labs, which uses AI for drug discovery, reached a valuation of $1.5 billion following its first external financing round. The round was led by Sequoia China, IDG Capital, and Hillhouse Investment, with Five Source Capital as co-lead investor. Other investors included Gaorong Capital, Spring Capital, Boyu Capital, as well as strategic investors SBP Group and the state-backed Shanghai Future Industry Fund. One source noted that ByteDance spun off the AI drug discovery company to better support its long-term development, as AI-driven drug discovery follows different industry logic and management approaches compared to the group's core business. A second source said that after the funding, ByteDance will retain a 56% stake.
Read sourceByteDance Spins Off AI Drug Discovery Firm Anew Labs, Retains 56% Stake After $290 Million Round
ByteDance has completed a $290 million funding round for its AI drug discovery unit, Anew Labs, following its spin-off, according to sources cited by Jin10 Data on September 16. The Shanghai-based company, which uses AI for drug discovery, reached a valuation of $1.5 billion after its first external financing round. The round was led by Sequoia China, IDG Capital, and Hillhouse Investment, with 5Y Capital as co-lead investor. Other participants included Gaorong Capital, Spring Capital, Boyu Capital, as well as strategic investors SoftBank Group and the state-backed Shanghai Future Industry Fund. One source said ByteDance spun off the company to better support its long-term development, as AI-driven drug discovery follows different industry logic and management practices from the group’s core business. A second source said ByteDance will retain a 56% stake after the financing.
Read sourceByteDance Completes $290 Million Funding Round for AI Drug Discovery Unit ANEW LABS
According to sources cited by Jin10, ByteDance has completed a $290 million funding round for ANEW LABS, its newly spun-off AI drug discovery division. The move separates ByteDance's artificial intelligence-driven pharmaceutical research unit into an independent entity, which has now secured significant external investment. The funding round underscores continued investor interest in applying AI to drug discovery and development, a sector where technology companies are increasingly active. The exact investors and valuation of ANEW LABS were not disclosed in the report. This development follows a broader trend of major tech firms restructuring their AI-focused healthcare and life sciences operations to attract dedicated capital and talent.
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ByteDance completes $290 million funding round for AI drug discovery unit ANEW LABS
ByteDance, the parent company of TikTok, has completed a $290 million funding round for its AI drug discovery unit ANEW LABS following its spin-off, according to sources cited by TradeAlpha. The funding round underscores continued investor interest in applying artificial intelligence to pharmaceutical research and development. ANEW LABS, which was spun off from ByteDance, focuses on using AI to accelerate drug discovery processes. The exact valuation of the unit and the investors involved were not disclosed in the report. The development highlights the growing convergence of technology and biotechnology sectors, with major tech firms investing in AI-driven healthcare solutions.
Read sourceAI Drug Discovery Firm Anew Labs Raises $290 Million in First Independent Funding Round
On September 16, Wall Street Insight reported that AI drug discovery company Anew Labs completed its first independent funding round, raising $290 million. Investors include Sequoia China, IDG Capital, Hillhouse Venture Capital, 5Y Capital, and Gaorong Capital, with several domestic pharmaceutical industry groups participating as strategic investors. The company was spun off from ByteDance in June 2024, transferring the core team, algorithm platform, and existing pipeline assets to the new entity. Led by former team head Liu Kai, the core group comprises approximately 50 members, including experts in AI algorithms and pharmaceuticals. Industry analysts believe the fundraising aims to attract more industry talent and strategic resources through an independent entity, while establishing organizational incentive structures suited to its AI drug discovery business. Neither Anew Labs nor ByteDance had commented on the news as of press time.