5Y News | Shukun Technology Secures Another 590 Million Yuan in Funding, 5Y Capital Continues Its Support
Shukun Technology Raises Another 590 Million Yuan in Funding, Accelerating Medical AI Value Realization with Triple-Class Certification and Capital Backing
On December 28, Shukun Technology announced the completion of a new RMB 590 million funding round. The round was led by HSG, with follow-on investments from China Reinsurance and CICC Pucheng. Existing shareholders Huagai Capital, 5Y Capital, CCV, Qiming Venture Partners, and YuanYi Capital also continued to participate. China Renaissance served as the exclusive financial advisor for this round. Shukun Technology's total fundraising this year has reached nearly RMB 1 billion.
Qin Liu, Founding Partner of 5Y Capital, said: "It has only been a little over two years since 5Y Capital first invested in the company at Series A. Shukun has transformed from a startup into a leading player in the AI healthcare space, achieving substantial revenue growth and continuous product launches.
What most impressed us about Mr. Mao and Anne (Chune Ma) back then was their differentiated strategic path — the company prioritized building a medical knowledge graph and methodically laid down the technical infrastructure for AI and cloud computing. This clear strategy and strong execution have enabled the company to truly create medical value through AI empowerment. What excites us even more is the company's evolution from multiple vertical product matrices toward a more platform-oriented AI intelligent diagnostic infrastructure. We look forward to Shukun, with the support of this new round of financing, continuing to contribute to the further balancing of healthcare supply and demand and efficiency improvements."
Q & A
Chune Ma
CEO, Shukun Technology
Q1
5Y Capital: In your industry, what "contrarian" thinking do you have, and what has been the biggest misunderstanding the market has had about you?
Chune Ma: Consensus is an interesting concept. Some people can see the future, some can only see the present, some can understand the past, and some can't even recognize the past. It's a matter of cognition. When we started our business in 2017, there were already many startups in the industry, all crowded into entry-level applications. What should have been a high-tech, high-barrier industry suddenly had hundreds of companies doing the same thing, and the industry plunged into a red ocean from the start. Looking back today, it seems obvious. But at the time, most people could only see this, including many well-known investment institutions.
From the very beginning, Shukun had a very clear plan for the core essence and path of medical intelligence, but not many investors could understand us. I still remember pitching for our Series A round in 5Y Capital's large conference room. Some colleagues asked why we were building our own cloud, others asked why we were starting from cardiovascular — a field no one else was doing — wondering if it was because no one wanted to do it. In the end, I don't know if Richard fully understood, but he immediately said they could be the first to offer a term sheet.
Shukun Technology has continuously created "hit products" in the industry, achieving multiple "firsts." In the long run, the market rewards true value innovators.
Q2
5Y Capital: What has been the biggest difficulty in your three-plus years of entrepreneurship? In retrospect, how has this difficulty shaped you?
Chune Ma: The biggest difficulty has been hiring people. Finding the right people is hard. Entrepreneurship is still a path few choose. Everyone has realistic alternatives. I basically interview every day now, at least two people, constantly meeting candidates, and have gradually developed our own perspective on talent.
The next phase is a critical development stage for the medical AI industry to truly achieve breakthroughs in value closure. Organizational capability with strong execution that can fight major battles is extremely important.
Q3
5Y Capital: Since starting your business, what common sense or principles have become increasingly important to you?
Chune Ma: Adhering to long-termism — this is something we repeatedly communicate to our investors, our employees, and our partners.
The medical industry particularly needs technological empowerment and urgently needs to address the supply of medical service capabilities. Although Shukun has achieved a good start, the path to medical intelligence remains long and challenging. As long as we consistently focus on customer pain points to develop products and continuously break through technologically and commercially, Shukun's vision of "ubiquitous intelligent medical health services" will certainly be realized.
This round of funding will be used to increase R&D investment in original technologies, continuously improve the "Digital Human" core technology product line, further accelerate product deployment at medical institutions at all levels, and speed up the comprehensive coverage of digital medical productivity in the national hospital intelligentization process.
Despite the challenges of 2020, Shukun Technology achieved remarkable results: its COVID-19 AI R&D efforts in the fight against the pandemic were recognized by the Ministry of Industry and Information Technology, and the company was invited to present its technology-driven pandemic response achievements at the Beijing Municipal Government's COVID-19 press conference; "Digital Heart" won the first Class III medical device registration certificate in China for cardiac stenosis; "Digital Brain" joint research was published in a Nature series journal and won first prize at the Beijing Medical Association competition; partnered with regional health commissions to create "Digital Doctors at the People's Doorstep"; Shukun AI was repeatedly included in authoritative rankings by the National Health Commission, China Hospital Association, People's Daily, "Healthy China," and the Beijing Medical Association, with multiple top hospitals nationwide reporting application cases of Shukun AI empowering hospital intelligentization; near year-end, the company was also selected as one of the top two Chinese companies in "The Information's" "50 Most Promising Startups."
01
Cardiac AI Obtains First Class III Certificate for Stenosis Diagnosis,
"Digital Human" Accelerates Toward Diversification and Holistic Coverage
Shukun has achieved outstanding results in the cardiovascular space and continues to lead the industry. In November 2019, its cardiac AI was the first to enter the innovative review fast-track channel; in November 2020, it obtained NMPA Class III certification, becoming the first certificate in the cardiac stenosis AI field and the first Class III certificate in Shukun's "Digital Heart" product family. According to public data, there are currently 330 million cardiovascular disease patients in China, and this number may continue to grow as the population ages. The "Digital Heart" product family, as an intelligent platform centered on cardiac scenarios, currently has 8 products covering the full disease cycle from health screening, precise in-hospital diagnosis, preoperative precise assessment, to post-discharge follow-up. It has been commercially deployed at public hospitals, private hospitals, and regional medical service centers at all levels, cumulatively serving tens of millions of people.
In July 2020, Shukun globally launched the "Digital Brain" product family, leading the entire industry and focusing on 13 million stroke patients. In September 2020, Shukun's multi-center study with Xuanwu Hospital was published in a Nature series journal. The research results showed: 1) In terms of hospital efficiency improvement, AI performed excellently: from July to November 2019, the system's use at Xuanwu Hospital reduced the average image post-processing time from 14.22±3.64 min to 4.94±0.36 min, cutting time by more than threefold; technician click operations were reduced from 115.87±25.9 to 4. After five months of use, post-processing staff was reduced from 3 to 1. 2) In terms of patient benefits: traditional head-neck CTA examinations require manual subtraction and bone removal to obtain vascular images, with complex procedures requiring patients to undergo 2 scans; AI technology requires only a single scan, reducing physical and psychological stress on patients. The product is currently being validated and trialed at over 100 stroke centers nationwide, showing very good clinical results.
In accordance with the "Healthy China 2030" planning outline, Shukun Technology has expanded from "Digital Heart" to build the "Digital Human" intelligent imaging platform encompassing "Digital Brain," "Digital Chest," "Digital Abdomen," and more, rapidly enhancing medical supply capacity at all levels and comprehensively covering the daily diagnostic and treatment needs of Chinese residents.
02
Three Years of Creating Multiple "Hit Products,"
Major Capital Powers the Value Realization of AI Medical Imaging
After more than three years of cultivation, Shukun AI products have become standard "hit products" at hospitals at all levels. "Digital Heart," "Digital Brain," and other products have achieved full-process intelligentization of imaging diagnosis pathways, helping deployed hospitals realize medical service capabilities where "patients can be examined immediately upon arrival and receive reports without waiting," greatly improving patient experience and hospital resource utilization efficiency. The various product series are already in high-stickiness use at over 400 top-tier tertiary hospitals nationwide, including Peking Union Medical College Hospital, Beijing Anzhen Hospital, and Shanghai Ruijin Hospital. Among the top 30 hospitals in Fudan University's cardiovascular hospital ranking, 29 have already conducted deep clinical cooperation with Shukun in the cardiovascular field. In 2020, Shukun and strategic partner Philips Healthcare jointly developed an intelligent cardiac CT solution, significantly increasing market share with commercialization progress leading the industry.
5Y Capital (formerly Morningside Capital) currently manages approximately US$3 billion in USD and RMB dual-currency funds. We believe the world would be a better place if the "crazy" you that others see starts to be believed.
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