Merck launches China seed fund

The fund will be co-managed by Merck China and the parent company's Netherlands-based VC arm M Ventures, which invests across a range of healthcare bioscience categories. This includes hardware, software, equipment, internet-of-things, and emerging fields such as digital medicine. The latter encompasses diagnosis via ingestible sensors and cognitive therapeutics via interactive video interfaces.

Individual deployments will range as high as EUR1 million ($1.1 million). The pipeline will be supported by a recently launched innovation hub in Shanghai, which has recruited six start-ups for its accelerator program since February. A second hub in Guangzhou is expected to open in November and support Merck's agenda as part of the Greater Bay Area development initiative, according to a statement.

The new fund is M Ventures' first activity in China but will leverage a strong existing presence by Merck. This includes separate healthcare and life science cooperation agreements with Alibaba Group, as well as two manufacturing facilities in Nantong, which represent an investment of some EUR250 million. Merck also hosts a global R&D in Beijing as well as materials and life sciences R&D centers in Shanghai.

Merck's direct investments include Chinese cancer drug developer BeiGene and US-based Just Biotherapeutics, which operates in China as Just China and counts several venture capital firms as investors. Merck has also formalized partnerships with a number of VC-backed start-ups in China, including DNA-focused drug developer HitGen and contract research organization Biocytogen.

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• Topics
• Greater China
• Healthcare
• Technology
• Venture
• Fundraising
• China
• seed
• Pharmaceuticals