TikTok parent ByteDance raises cash for drug AI spinout Anew
Chinese tech giant ByteDance – best known as the parent of social media app TikTok – has completed a $290 million financing for its recently formed AI-powered drug discovery unit, Anew Labs.
First reported by Reuters, which cited two sources familiar with the matter, the financing was led by HSG (formerly Sequoia China), IDG Capital, and Hillhouse Investment, with 5Y Capital also taking part. ByteDance has reportedly retained a 56% stake in the company.
Shanghai-headquartered Anew Labs was formed inside ByteDance in 2021, under the leadership of Liu Kai, who headed up the tech development of AI for life sciences and drug discovery. It started life with around 50 researchers and was officially spun out in June, with all algorithms, technology platforms, and pipeline assets transferred to the new company.
Anew has developed a series of AI models for drug discovery, including AnewFold for predicting the structure of proteins and related molecular complexes, AnewDesign for antibody design and optimisation, and AnewMind, described as a large language model (LLM) reasoning assistant for drug discovery decisions.
At the American Association of Immunologists (AAI) annual meeting held in Boston in April, Anew Labs' researchers presented details of orally bioavailable pan-IL-17 small-molecule inhibitors designed using its generative AI platform.
According to the presentation, the molecules are the first to achieve strong engagement with the IL-17F homodimer (IL-17F/F), a target that Anew says has long been regarded as notoriously challenging for small molecules and is a driver of chronic inflammation.
The IL-17F/F project is now in the lead optimisation phase, while Anew Labs is also working on drugs that interact with the IL-4 receptor and two other undisclosed targets.
The financing gives the company a valuation of around $1.5 billion, according to Reuters, which notes that other investors in the round included Gaorong Ventures, Primavera Venture Partners, and Boyu Capital, along with the Chinese state-backed Shanghai Future Industries Fund and SBP Group.
The spinout – which will continue to rely on ByteDance for its computing power – has operations in Shanghai, Singapore, and San Jose in California, US, and has a headcount of 36 core team members, according to its website.
