Deal focus: Fourier brings robotics to rehab

Masayoshi Son’s fascination with robots is no secret. The SoftBank CEO has an entire division devoted to the field – best known for developing Pepper, the world's first social humanoid robot – and he predicts that robots will outnumber humans by 2040.

SoftBank has made several investments in Chinese robotics start-ups through its Vision Fund series, targeting different functional capabilities: Gaussian for sanitation, Keenon for restaurants, and most recently, Fourier for rehabilitative care.

Vision Fund 2 led a CNY 400m (USD 63m) Series D round for Fourier, with participation from Prosperity7 Ventures – a unit of Saudi Arabian state oil company Saudi Aramco – and China’s Vision Plus Capital. The latter led a CNY 100m Series B for the start-up in 2020. Earlier investors include IDG Capital, Volcanics Venture, and Qianhai Fund of Funds.

When Vision Plus decided to back Fourier, the start-up had yet to achieve large-scale sales, but it had been certified by the National Medical Products Administration (NMPA). Terry Tian, a partner at the venture capital firm, believes that rehabilitation is not only a huge market, but also one primed for rapid commercialisation.

“China has a large population, and compared with the European and North American markets, we have a shortage of rehabilitation therapists. Regulators have issued policies to encourage hospitals to establish rehabilitation departments, and the government will also allocate corresponding funds,” she said.

Scaling at speed

Rehabilitation robots can be rolled out faster than the specialist surgical kind, which take on higher-risk procedures and sometimes replace senior doctors. Many therapists follow standardised rehabilitation protocols, so the transition to robots can be easier and smoother. As such, Fourier scaled rapidly in 2021, its revenue growing threefold.

Alex Gu (pictured), the company’s founder and CEO, told AVCJ that his robots are now used in nearly 30 countries by 1,000 institutional healthcare customers. The international footprint also includes 17 joint research joint labs and research partnerships with 30 hospitals and institutions in locations such as the US, Australia, and Switzerland.

“Much has changed in the past two years. Chinese start-ups are targeting global markets from day one, not just the domestic market. Previously, they were known for being original equipment manufacturers (OEMs) or offering cheaper versions of foreign products. Today, Chinese products are high-quality, tech-driven, and aesthetically pleasing, leveraging a rich supply chain,” said Gu.

Gu’s entry into robotics was driven by passion rather than a thoroughly considered business plan. He developed an interest in the field while at university and ended up participating in robot-making competitions. The 2008 Wenchuan earthquake, which claimed 69,000 lives, was a watershed. Gu decided he wanted to make robots that help people with injuries rehabilitate.

Officially launched in 2015, Fourier has refined its technology to deliver robots that are ever smaller but still powerful, making day-to-day use less invasive. Its products often serve as exoskeletons that fit around damaged limbs and track movement using high-precision force and position sensors. Data relating to motion, strength, cognition, and response time is analysed and fed into training reports.

While the first robot was a more than four-year project, nearly 20 different models were released over the next three years. Robots focus on a variety of scenarios – such as walking, stretching, and hand training – but the underlying modules are like Lego building blocks. “With the same pieces, you can achieve different forms,” Gu explained.

Intelligent platforms

At the same time, Fourier’s 200-strong R&D team is looking beyond robot delivery to utilisation, developing an intelligent healthcare robotics platform that delivers tailored solutions. The mission is no longer creating individual robot models, it is providing end-to-end care services.

“Many Chinese hospitals do not have rehabilitation departments. What they lack is not just robots. We need to provide a complete rehabilitation department plan, from standardised operation to training, including how to identify and treat conditions,” Gu said. “A rehabilitation department that required 20-30 therapists many only need a few, if we can put in 20-30 robots.”

This mindset is filtering through the entire robot ecosystem. Logistics customers want smart warehouse solutions, not just automated guided vehicles (AGV); restaurants and hospitals are asking for entire logistics plans, with software-as-a-service (SaaS) tie-ins, as well as delivery robots.

The model Gu has in mind for Fourier is robot-as-a-service – the company delivers a robot with basic features, and customers access more sophisticated features aimed at specific medical conditions through downloads and updates from the cloud. He draws parallels with mobile phones, which come with standard functionality and then users download their own apps, sometimes paying extra.

Tian of Vision Plus believes the firm’s internet DNA – it was founded by a former Alibaba Group executive and has ties to major internet companies – is well suited to Fourier’s development plan. Vision Plus began investing in healthcare in 2017, focusing on internet-based services. It expanded into medical technologies and products in 2020, looking to help start-ups commercialise and scale.

“Our internet DNA is very complementary to traditional healthcare investment funds in terms of the value we can bring to companies,” Tian explained. “The areas Fourier want to enter are closely aligned with big data and artificial intelligence, such as intelligent diagnosis systems. We can contribute resources here.”

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• Topics
• Greater China
• Expansion
• Technology
• Healthcare
• China
• Growth capital
• Vision Plus Capital
• Softbank
• IDG capital
• deep-tech