ByteDance Spin-Off Anew Labs Raises $290 Million to Expand AI Drug Discovery
Shanghai, September 18, 2026: Anew Labs, an artificial intelligence company focused on drug discovery and spun out of Chinese technology giant ByteDance, has secured $290 million in its first external fundraising round, according to people familiar with the transaction cited by Reuters. The funding gives the Shanghai-based company a reported valuation of about $1.5 billion.
The financing comes as artificial intelligence is becoming increasingly important in pharmaceutical research, particularly in areas such as molecular modelling, drug design and the search for potential new medicines.
ByteDance Retains Majority Stake
Following the fundraising, ByteDance is expected to retain a 56% stake in Anew Labs, according to one of the sources cited by Reuters.
The company was separated from ByteDance as a standalone business to allow its development to follow a different operating and management model from ByteDance’s core technology activities.
Major Investors Participate
The funding round was led by HSG, formerly known as Sequoia China, IDG Capital and GL Ventures, the investment arm of Hillhouse Investment. 5Y Capital was also identified as a co-lead investor.
Other participants included Gaorong Ventures, Primavera Venture Partners, Boyu Capital, SBP Group and the state-backed Shanghai Future Industries Fund, according to sources familiar with the fundraising.
ByteDance and the investors did not immediately respond to Reuters’ requests for comment at the time of reporting.
AI Models Target Drug Development
Anew Labs is developing artificial intelligence platforms aimed at understanding and designing biological molecules. Its work includes biomolecular structure prediction, antibody design and optimisation, and drug discovery.
The company’s development pipeline includes a small-molecule drug, another programme aimed at a protein located on the surface of human cells and two additional drug projects whose targets have not been publicly disclosed.
Operations Across Three Locations
The company is headquartered in Shanghai and also has offices in San Francisco and Singapore.
Its fundraising reflects growing interest in AI-based approaches to pharmaceutical research, as technology companies and specialised biotechnology firms seek to use computational models to accelerate early-stage drug development.
Anew Labs’ latest financing provides additional capital for expanding its research platforms and advancing its drug-development programmes.
