Gold Nuggets In The Next Nuggets: The Capital Story Behind Burning Stone Medicine

In June 12th, burn stone became the first Chinese cancer NGS testing company in the US. According to the closing price in June 16th, the market value of combustible medicine is about $2 billion 480 million.

During the six years of entrepreneurship, stone science has gone from nobody to capital, and its field of cancer gene detection has become "the next gold mine".

The emergence of NGS disruptive technology has changed the pattern of "diagnosis" and "treatment" in the field of clinical treatment of cancer. From the "treatment" as the center, it gradually evolved into "diagnosis". At the same time, NGS technology and tumor drug research and development formed a positive feedback ecological cycle.

The founder and CEO Han Yu Sheng of burning stone medicine said that NGS technology will gradually become a new dimension in the field of oncology. "In this process, the vision of burning stones is to make the world's medical industry a pole, to achieve the limit of technology and to achieve the ultimate application scenario."

From nobody to capital fever

In 2013, Han Yu sang, a former investment manager of the north light industry, paid close attention to the investment in the field of gene sequencing, and saw the blank of quality projects in the field of NGS.

Many VC have the dream of starting a business, but good opportunities can never be met. For young Han Yu, he could not refuse.

Han Yusheng's idea of entrepreneurship was supported by Deng Feng, founder of northern light. Many years later, Deng Feng recalled to the economic news reporters in twenty-first Century: "making VC is forward-looking, which made him find opportunities earlier. He can see the opportunity to jump in and do something related to his personality. Han Yu Sheng is a man who ventured forward.

Han Yu Sheng began to visit VC investment people with his idea of starting a business and Deng Feng's investment intentions. The result after several months was not satisfactory. At that time, the capital market of domestic venture capital market was also a TMT project, especially the home of mobile Internet financing. In the field of medical investment which is not yet popular, the detection of tumor NGS is not even a "track".

In the end, it was invested by Aurora Borealis and Lenovo star. Two VC became the first round of investors in the company, while the northern light venture company ranked 13.7% of the pre IPO stake in the first largest investment institution for stone medicine, and Lenovo shares 6.1% of its shares before listing.

"Venture capital investing resources and resources to advanced productive forces is the reason why VC can accelerate the development of excellent companies. Promoting the development of the industry is common in the fields of health care, IT, materials and energy. " Deng Feng introduced burning stone medicine as an important factor in the field of gene sequencing.

The same amount of money invested in stone medicine has Sequoia Capital China fund, the latter from the A+ round of continuous holdings, holding 9.1% of the company's shares before the listing. Burning stone medicine has also become one of the model projects of Sequoia China's strategy of "full chain, full cycle and full stage".

Before the listing of IPO company, the total amount of the total amount of burning stone medicine was more than 200 million US dollars. The luxurious investor team included northern light venture capital, Sequoia Capital China fund, recruit international, Lenovo star, Ji Feng capital, Lilly Asia Fund, GIC, Taihe capital and so on.

Second growth curve

The investment in the US market was also supported by two tier market investors. The company raised about $250 million from the initial public offering and the cornerstone subscription.

Jeky, founder and founder of IPO, the founder of the Institute of stone medicine, told the twenty-first Century economic news reporter: "when we choose medical and pharmaceutical sub sectors, the most important thing is technological innovation and its commercialization capability in the Chinese market. In terms of technological innovation and commercialization, burning stones is undoubtedly the benchmark for China's NGS industry. "

According to the prospectus of burning stone medicine, the funds raised will be mainly used for the research and development of cancer early detection technology; other tumors will be accompanied by the registration and certification of diagnostic products, including complete clinical trials, and other management expenses.

A number of investors who interviewed by the twenty-first Century economic report said that early detection of cancer would become the second growth curve of continuous development of stone medicine.

"The combination of diagnosis and diagnosis and treatment technology will transform chronic diseases into chronic diseases in the foreseeable future." According to Deng Feng analysis, with the development of diagnosis and treatment technology, early diagnosis and early screening will improve the five year survival rate of cancer.

According to the closing price in June 16th, the first round of investors in stone medicine has gained about 120 times the book return in six years.

Burning stone medicine is the first investment of Lenovo in gene detection field. It is also the first decision making project after Lenovo Star Partner joined the team. In a cool view, "for high quality companies, listing should be a small step in its development. As a 100 billion potential company, today's burning stone is only the initial stage of development.

In the case of investors and founding teams, the IPO of NASDAQ proved that China's cancer NGS enterprises were recognized by the international capital market. This is an important milestone for burning stone medicine, and will also be a new starting point.