ByteDance AI drug discovery spin-off raises $290 million at $1.5 billion valuation

A ByteDance spin-off focused on artificial intelligence-powered drug discovery has closed a US$290 million funding round at a US$1.5 billion valuation, underscoring surging investor appetite for Chinese biotechnology start-ups deploying AI in pharmaceutical development.

Shanghai-based Anew Labs secured the capital from a consortium including HSG, the rebranded Sequoia China, IDG Capital and 5Y Capital, according to a person familiar with the matter. ByteDance, the social media giant that launched the unit, retained a 56 per cent ownership stake following the transaction.

AI drug development draws fresh capital

The fundraising marks part of a broader wave of investment flowing into Chinese AI drug discovery platforms this week, with domestic start-ups collectively raising hundreds of millions of dollars as investors seek homegrown alternatives to Western leaders such as Anthropic and Isomorphic Labs. The funding surge reflects AI's rapidly advancing role in pharmaceutical design.

Platform spans prediction and open-source tools

Anew Labs operates multiple artificial intelligence models for biomolecular structure prediction and design. Its technology portfolio includes AnewFold, a proprietary foundation model developed in-house, alongside Protenix, an open-source version of AlphaFold 3. AlphaFold 3 represents the most advanced biomolecular prediction AI model created by Google DeepMind and its Isomorphic Labs division.

The company did not immediately respond to a request for comment.

Source: South China Morning Post