Although precision medicine has been a hot topic in the venture capital industry over the past couple of years, there are few precision medical companies in China truly able to make technological innovations, says a top investor in China.

Sequoia Capital's Chinese partner Chen Penghui made the comments at the ChinaVenture Annual Conference in Shenzhen during the weekend.

In the past two years, a large number of precision medical companies have emerged in the Chinese market, including gene sequencing firms, targeted drug therapy services, and cell therapy research companies. For instance, a lot of capital and entrepreneurs have flooded into the CTDNA industry, causing competition in the segmented market among dozens of and even hundreds of companies.

Although Sequoia Capital believes that precision medicine represents a good trend of medical reform for the long term, the firm that has made gambles and big wins in China also believes that start-up companies in China are more driven by marketing ability and concepts while few are driven by technological innovation. Thus, Chen Penghui warns investors and entrepreneurs that the short-term buzz among investors and entrepreneurs are not likely to be continued.

Yunfeng Capital's medical investment leader Luo Yitian also said at the same conference that a third of the company's fund CNY30 billion yuan was invested in the field of medical health, including biomedical, medical devices and in vitro diagnosis (IVD) sector as well as a small part of medical services.

Yunfeng Fund, founded jointly by Alibaba's founder Jack Ma, has two investment teams: a TMT investment team and a medical investment team. So it is very interested in investing in mobile medicine, according to Luo Yitian.

However, in the past two years, this industry has stepped from the buzz and overheated state into a more stable integration state, so only one or two firms has remained in each field.

Yunfeng Fund is paying attention to the combination of online and offline (O2O). And its affiliate Alibaba has its eyes on user data. The company grabbing more health companies as part of its Alibaba Health initiative. Then Alibaba will have access to the physical examination data of hundreds of millions of Chinese every year.


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