ByteDance has turned an internal drug-discovery operation into a company valued at $1.5 billion while keeping majority ownership, giving the TikTok parent exposure to an AI biotech business that can now raise capital independently.
Anew Labs completed a $290 million inaugural external financing, Reuters reported, citing two people familiar with the transaction. One source put the Shanghai-based company’s valuation at $1.5 billion following the financing, while another said ByteDance will retain a 56% stake.
At the reported valuation, that ownership percentage implies ByteDance’s remaining position is worth about $840 million.
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HSG, formerly Sequoia China, IDG Capital, and Hillhouse Investment led the fundraising, according to Reuters. 5Y Capital participated as a co-lead, with Gaorong Ventures, Primavera Venture Partners, Boyu Capital, SBP Group, and the state-backed Shanghai Future Industries Fund also participating.
The structure leaves ByteDance controlling the company even after opening it to a broad group of financial and strategic investors.
ByteDance began separating its AI drug-discovery operation in June. Earlier reporting said the new entity would inherit the internal team, algorithms, technology platform, and drug pipeline while continuing to receive computing support from ByteDance’s Volcano Engine. The operation was built around a roughly 50-person core team led by Kai Liu.
Anew Labs now describes itself as an AI-driven drug-discovery company with offices in Shanghai, San Francisco, and Singapore. Its disclosed pipeline includes programs targeting IL-17AA/AF/FF and IL4R, alongside two undisclosed targets. Its technology stack includes protein-structure prediction, molecular generation, antibody design, and a scientific reasoning large language model.
Chinese investment publication PEDaily separately reported that Anew Labs completed its first independent financing at $290 million and said the unit was formally spun out in June.
