ByteDance’s AI drug unit Anew Labs raises $290M at $1.5B valuation, according to Reuters
ByteDance (discover more) closed a $290 million funding round for Anew Labs, its newly spun-off AI drug discovery unit, valued at $1.5 billion, as reported by Reuters citing two sources familiar with the matter. ByteDance will retain 56% of Anew Labs following this investment.
The transaction was led by HSG (formerly Sequoia China), IDG Capital, and Hillhouse Investment, with participation from 5Y Capital, Gaorong Ventures, Primavera Venture Partners, Boyu Capital, Shanghai Future Industries Fund, and SBP Group as a strategic investor.
Volcano Engine, ByteDance’s cloud division, will continue to provide computing power for Anew Labs. The unit is headed by Liu Kai, who previously held roles in venture capital at IDG Capital and Fire Stone Investment before joining ByteDance in 2021.
According to Reuters, the spin-off aims to support long-term growth of AI-driven drug discovery, which follows a distinct industry logic and management approach from ByteDance’s other businesses. Intelligent Emergence had previously reported on the spin-off, stating that approximately 50 core staff would transfer along with algorithms, technology platform, and pipeline assets.
Anew Labs has locations in Shanghai, Singapore, and San Jose, California, and boasts 36 core team members as of May. For Jack Ma, owner of ByteDance (parent company to TikTok), this is an unusual move for his portfolio: a drug development company with four candidates but no approved medications yet.
By Ana-Maria Stanciuc, Editor-in-Chief, TNW
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