HONG KONG, Sept 16 (Reuters) - 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.
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
Source: Reuters