ByteDance spin-off Anew Labs raises $290M at a $1.5B valuation; ByteDance keeps 56%
- Raised
- $290M
- Valuation
- $1.5B
- Place in VP50
- #17
- Sources
- 4
What happened
Anew Labs, a Shanghai-based AI drug discovery company spun off from ByteDance, raised $290 million at a valuation of $1.5 billion, according to reports published on 16 September 2026. Reuters reported the round, citing two people familiar with the matter, and TheNextWeb and Dealroom relayed it. No source read carried a statement from Anew Labs or ByteDance.
Dealroom described the financing as a Series A. It was led by HSG (formerly Sequoia China), IDG Capital and Hillhouse Investment, with 5Y Capital as co-lead. Other participants named were Gaorong Ventures, Primavera Venture Partners, Boyu Capital and the state-backed Shanghai Future Industries Fund, with SBP Group joining as a strategic investor. ByteDance keeps a 56% stake after the round, according to the reports. Reuters' sources said the spin-off was meant to support the unit's long-term development, because AI drug discovery follows a different industry logic and management approach from ByteDance's core operations. The reports did not give a price per share or the size of ByteDance's stake before the round.
Key points
- Anew Labs raised $290 million at a $1.5 billion valuation, reported on 16 September 2026.12
- HSG (formerly Sequoia China), IDG Capital and Hillhouse Investment led; 5Y Capital co-led.12
- ByteDance keeps a 56% stake after the round.12
- The report rests on unnamed sources: Reuters cited two people familiar with the matter, and no company statement appeared in the sources read.12
Why it matters
The $1.5 billion valuation puts a reported outside price on a unit ByteDance holds 56% of. Its basis is unnamed sources, with no company confirmation in the sources read.
Venture firms, a strategic investor and a state-backed fund joined the round. That is a wider set of holders than ByteDance alone, which bears on who could later trade the shares.
At 56%, ByteDance remains the majority holder, so any later sale of stock or listing decision involves it, though no source discusses an exit.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Series D | Apr 2017 | $11B | $1.0B | CCB International and Sequoia Capital |
| Funding round | Aug 11, 2017 | $20B | $2.0B | General Atlantic |
| Funding round | Oct 25, 2018 | $78B | $3.0B | Unknown |
| Funding round | Dec 11, 2020 | $180B | $2.0B | KKR and Sequoia Capital |
Updated
Fact-check
- Anew Labs, headquartered in Shanghai, raised $290 million at a $1.5 billion valuation, reported on 16 September 2026.Confirmed by [1] TheNextWeb and [2] Dealroom (both 16 September 2026), which attribute the figures to Reuters. [3] South China Morning Post and [4] Reuters could not be opened by the checker.Verified
- The round was led by HSG, IDG Capital and Hillhouse Investment, with 5Y Capital as co-lead, and joined by Gaorong Ventures, Primavera Venture Partners, Boyu Capital, the Shanghai Future Industries Fund and SBP Group.Confirmed by [1] TheNextWeb and [2] Dealroom.Verified
- ByteDance keeps a 56% stake after the round.Confirmed by [1] TheNextWeb (keeps 56%) and [2] Dealroom (will retain a 56% stake).Verified
- Dealroom described the financing as a Series A.Confirmed by [2] Dealroom; [1] TheNextWeb does not give a series label, so the post attributes it to Dealroom.Verified
- Reuters cited two people familiar with the matter, who said the spin-off supports long-term development because AI drug discovery follows a different industry logic and management approach; no company statement was read.Confirmed by [1] TheNextWeb and [2] Dealroom; TheNextWeb carries no on-record statement from Anew Labs or ByteDance.Verified
Sources
- [1]TheNextWeb (opens in a new tab)ByteDance's AI drug unit Anew Labs raises $290M at $1.5B valuation, Reuters reports
- [2]Dealroom (opens in a new tab)ByteDance's Anew Labs raises $290M for AI drug discovery at $1.5B valuation | Dealroom Newsdifferent industry logic and management approach
- [3]South China Morning Post (opens in a new tab)ByteDance spin-off Anew Labs raises US$290m as AI drug developers enjoy fundraising boom
- [4]Reuters (opens in a new tab)ByteDance completes $290 million fundraising for AI drug unit after its spin-off
