Analysis of Investment Characteristics of Medical and Health Investment Institutions in 2021: Investment Capability

This paper selects 347 investment institutions that have invested in medical and health projects more than 10 times.
Based on their investment and financing behavior in 2021, from the two dimensions of investment ability and exit ability, and corresponding 12 detailed indicators, the key characteristics are analyzed to explore medical and health care.
Characteristics of investment in the field
.

In this article, we mainly observe the investment capability performance of active investment institutions and the evolution of investment trends of leading investment institutions in 2021

01 2021 Investment Overview

01 2021 Investment Overview

On the whole, the number of investment and financing events in the domestic medical and health sector has dropped significantly after 2018.
At least 1,687 investment events will occur in 2021, an increase of 86% compared with 904 in 2020, and the investment and financing enthusiasm has rebounded significantly
.

In terms of financing amount, after the trough from 2018 to 2019, it will gradually increase in 2020.

Figure 1: 2017-2021 Financing Events, Amounts and Growth Trends Data Source: Firestone Creation Database

From the perspective of the geographical distribution of investment and financing, the investment and financing events in the medical and health field in 2021 are mainly distributed in Shanghai, Guangdong, Beijing, Jiangsu, and Zhejiang.
These five provinces account for 85% of the national investment and financing events in the medical and health field in 2021, far exceeding other provinces
.

A total of 241 financing events occurred in Shanghai, and the cumulative financing amount reached 71.

Figure 2: Investment and financing events and amounts in the medical and health sector in 2021 Source: Firestone Creation Database

Figure 3: Distribution of financing rounds in the healthcare sector in 2021 Data source: Firestone Creation Database

In terms of financing rounds, the A-round has the largest number, with 449, followed by the B-round, and the two add up to more than 60%
.

02 Ranking of Investment Institutions' Investment Capability

02 Ranking of Investment Institutions' Investment Capability

As of 2021, 347 investment institutions have participated in at least 10 investments in the medical and health sector
.

By analyzing and sorting out the secondary indicators of investment capacity of these investment institutions, and using statistical methods to conduct synthetic calculations, the results can reflect the investment capacity of domestic investment institutions

The secondary indicators of investment capability include: the number of cities covered by institutional investment projects, the number of biopharmaceutical companies invested by institutions, the amount of biopharmaceutical companies invested by institutions, the number of unicorns captured by institutions, the number of biopharmaceutical companies led by institutions, and the A round of institutional investment in biopharmaceutical companies quantity
.

Table 1: TOP20 investment capabilities of medical and health investment institutions in 2021

Note: Sorted by the initials of Pinyin Data Source: Flint Creation Database

Sequoia China, Qiming Venture Partners, CICC Capital, IDG Capital, and Matrix Partners China entered the TOP5 of key investment institutions in terms of investment capabilities
.

From the perspective of secondary indicators, Sequoia China ranks first in all other indicators except for the number of unicorns captured by institutions, which has obvious advantages

03 Analysis of investment characteristics of investment institutions

03 Analysis of investment characteristics of investment institutions

(1) Number of cities covered by investment projects

In terms of the number of cities covered by institutional investment in medical and health projects, Sequoia Capital has the largest number, reaching 15.
CICC Capital and Matrix Partners are ranked second and third respectively.
Shanghai, Beijing, Shenzhen, Hangzhou and Suzhou are the popular layouts of investment institutions.
city
.

In addition to leading investment institutions, pharmaceutical companies such as Fosun Pharma, Tigermed, and Sinopharm Group have also begun to participate in venture capital investments, mainly investing in the midstream of the medical industry chain.

Figure 4: Number of cities covered by investment institutions in 2021 Data source: Firestone Creation Database

(2) The number of biopharmaceutical companies invested

The most active medical and health investment institution in 2021 is Sequoia Capital, with 86 investment companies, followed by Yuansheng Ventures, Matrix Partners, Hillhouse Capital, Qiming Ventures, with more than 30 investment companies
.

Compared with 2020, the number of the top three institutional investment companies has increased by more than 110%, and all the TOP20 have shown positive growth.

Table 2: Number and growth of investment projects by active pharmaceutical and health investment institutions in 2021

Data source: Flint Creation Database

(3) Amount invested in biopharmaceutical enterprises

Judging from the amount of institutional investment in biopharmaceutical companies, the TOP20 with total investment in 2021 will all be above 6 billion yuan, and 11 institutions will be 10 billion yuan and above.
Among them, Sequoia China has invested the most, reaching 33.
2 billion yuan, which is close to its total investment in the past year.
, followed by Aobo Capital, with an investment of more than 20 billion yuan, followed by Eli Lilly Asia Fund, Poly (Hengqin) Capital, and Hillhouse Capital, with 19.
8 billion yuan, 17.
6 billion yuan and 15.
4 billion yuan respectively
.

The investment of Sequoia Capital in 2021 far exceeds the investment amount of the previous year.

The highest overall financing amount is the strategic financing of 2.
34 billion euros from Siemens Healthineers, a medical imaging company, which was mainly invested by Qatar Investment Authority, followed by the strategic financing of 1.
5 billion U.
S.
dollars from the innovative drug R&D platform Ruige Medicine.
The investor is Eli Lilly.
Eli Lilly is a patent license in the field of metabolic diseases under Rui Ge Medicine, and the target is GLP-1R
.

Figure 5: Investment amount of some investment institutions (unit: 100 million yuan) Data source: Firestone Creation Database

Figure 6: TOP20 financing amount projects (unit: 100 million yuan) Data source: Firestone Creation Database

(4) The number of biopharmaceutical companies led by institutions

From the perspective of leading investment, Hillhouse Ventures ranked first with 6 leading investments, and IDG Capital, Sequoia China, and CICC Capital tied for second place with 4 leading investments
.
The largest leading investment project of Hillhouse Ventures was Clover Bio, a company focusing on the research and development of new crown vaccines, with an investment of US$230 million
.

Figure 7: Number of active lead investors (unit: number) Data source: Firestone Creation Database

(5) The number of A rounds of institutional investment in biopharmaceutical companies

In terms of the number of A-round investments in biopharmaceutical companies, Sequoia Capital, Yuansheng Venture Capital, and Matrix Partners have the largest number of A-round investments in biopharmaceutical companies, of which Sequoia Capital has reached 33, accounting for 39% of its investment projects
.

(6) Number of unicorns captured by institutions

According to the "2021 Global Unicorn List", the number of unicorns in the world has reached 1,058, of which 45 are Chinese medical and health unicorns.
Ping An Medical Insurance Technology, WeDoctor, and MGI are at the forefront
.

Sequoia China and Tencent investment companies will have the largest number of unicorns in 2021, with 8 each, followed by Wuyuan Capital and Qiming Venture Partners, which will account for 6 of the medical and health unicorns in 2021
.

Table 3: Some institutions’ unicorn capture record in 2021

Data source: Flint Creation Database

Figure 8: Number of A-round investments (unit: pieces) Data source: Firestone Creation Database

Figure 9: Number of captured unicorns (unit: pieces) Data source: Flint Creation Database

04 Summary and Trends

04 Summary and Trends

In 2021, the investment events and overall scale in the medical and health field will increase significantly.
From the perspective of leading institutions, the popularity of pharmaceutical investment has increased significantly
.
Sequoia Capital will rank first in 2021 with 84 projects with an investment of over 30 billion yuan, of which 33 are Series A, and 8 projects will become global unicorns in 2021
.
From the perspective of investment focus, it mainly invests in biotechnology companies in sub-segments such as mRNA technology, AI drug research and development, cell therapy, CRO and Internet medical care; Qiming Venture Capital will invest 10.
5 billion yuan in 2021, covering 33 projects, ranging from the amount Judging from the larger investment cases of Dejin Medical, Xingtong Medical, and Connosten, Qiming Ventures is inclined to the field of devices, such as minimally invasive interventional devices, surgical robots, etc.
The risks are relatively small and there is room for domestic alternatives; CICC In 2021, the capital participated in the investment of 28 medical and health projects, focusing on the innovative drug fields such as Yinnuo Pharmaceutical, Tylenol Microbio, and Binhui Bio
.
There is a certain overlap in the investment field of leading institutions, and they have jointly invested in unicorn companies such as Yuanxin Technology, WeDoctor, and Jingtai Technology.
It can be seen that digital health and AI new drug research and development targets are highly sought after
.

Affected by the epidemic and encouraged by the government, digital medical care has shown high value in the capital market.
Online diagnosis and treatment and drug purchase platforms such as Yuanxin Technology, WeDoctor, Pharmacistbang, and Dingdang Kuaiyao have attracted the attention of capital.
, Auscome and other innovative drug and CDMO companies have also gained a higher amount of financing
.

On the whole, with the implementation of large-scale procurement of drugs and equipment, the acceleration of artificial intelligence empowerment, and the surge in health demand brought about by the epidemic, the financing heat in the primary market will pick up significantly in 2021, and Internet medical services and innovative drugs that can improve patients' medical experience And the corresponding CRO, and high-end medical devices that are expected to achieve domestic substitution are more favored by capital
.