FundraiseSep 16, 2026, 10:35 UTC

ByteDance's Anew Labs raises $290M for AI drug discovery at $1.5B valuation

What's the deal? ByteDance has completed a $290 million Series A round for Anew Labs, its newly spun-off AI drug discovery unit, at a $1.5 billion valuation, Reuters reports, citing two people familiar with the matter. HSG — formerly Sequoia China — IDG Capital, and Hillhouse Investment led the round, with 5Y Capital as co-lead.

Who else took part? Gaorong Ventures, Primavera Venture Partners, and Boyu Capital joined, alongside strategic investor SBP Group and the state-backed Shanghai Future Industries Fund. ByteDance will keep a 56% stake after the round.

What does it do? Shanghai-headquartered Anew Labs uses AI for drug discovery. It has developed structure-prediction and protein-design models, including Protenix and PXDesign, plus four drug candidates — none yet approved.

Why now? ByteDance spun off the unit to support its long-term development, one source said, because AI drug discovery "follows a different industry logic and management approach" than the group's core operations. The move marks the TikTok owner's first step toward commercialising its AI-for-science work.

The signal: At $290 million, this is the largest Series A in Chinese healthcare over the trailing four years — the top of a 395-round sample. It signals rising conviction that AI-native drug discovery can stand apart from big tech's consumer roots and build a business of its own.