Chinese internet company ByteDance has completed a $290 million fundraising for its artificial intelligence drug discovery unit, Anew Labs, following its separation from the parent company, according to two people familiar with the matter.
The Shanghai based company, which uses AI technology to support drug discovery, was valued at about $1.5 billion following its first external fundraising, one of the sources said.
The funding round was led by HSG, formerly known as Sequoia China, IDG Capital and Hillhouse Investment, with 5Y Capital serving as a co lead investor.
Other participants included Gaorong Ventures, Primavera Venture Partners, Boyu Capital, strategic investor SBP Group and the state backed Shanghai Future Industries Fund, the sources said.
ByteDance separated Anew Labs from the group to give the company greater support for its long term development. One source said AI based drug discovery requires a different business model and management approach from ByteDance’s core operations.
ByteDance will retain a 56% stake in Anew Labs following the fundraising, according to the second source.
ByteDance and the investors did not immediately respond to requests for comment.
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