ByteDance raises $290 million for spun-off AI drug discovery unit at $1.5 billion valuation

ByteDance has completed a $290 million fundraising round for its newly spun-off AI drug discovery unit, Anew Labs, valuing the Shanghai-headquartered startup at $1.5 billion. ByteDance retains a 56% majority stake in the company, which is led by Liu Kai. The spin-off aims to support the unit's long-term development, as AI drug discovery operates under a different business logic than ByteDance's core social media platforms. Anew Labs currently has four drug candidates in its pipeline, including an AI-designed IL-17 inhibitor.

Anew Labs fundraising completion

• ▪Anew Labs is headed by Liu Kai, who joined ByteDance in 2021 after working in venture capital at IDG Capital and Fire Stone Investment for seven years.
• ▪Approximately 50 core staff members, along with algorithms, technology platforms, and pipeline assets, are moving to Anew Labs following the spin-off, according to a report by Intelligent Emergence.
• ▪Anew Labs has operations in Shanghai, Singapore, and San Jose, California, and listed 36 core team members on its website in May 2026.
• ▪ByteDance completed a $290 million fundraising round for its newly spun-off AI drugmaking unit, Anew Labs, on September 16, 2026.
• ▪ByteDance will maintain a 56% majority stake in Anew Labs following the completion of the $290 million fundraising round.
• ▪Anew Labs achieved a valuation of $1.5 billion after completing its inaugural external fundraising round on September 16, 2026.

Lead investor consortium

• ▪The fundraising round for Anew Labs was led by HSG, IDG Capital, and Hillhouse Investment, with 5Y Capital serving as a co-lead investor.
• ▪Additional investors in the Anew Labs fundraising round included Gaorong Ventures, Primavera Venture Partners, Boyu Capital, strategic investor SBP Group, and the state-backed Shanghai Future Industries Fund.

Spin-off strategic rationale

• ▪The spin-off of Anew Labs represents ByteDance's first step toward commercializing its AI-for-science efforts, according to a report by Intelligent Emergence.
• ▪ByteDance spun off Anew Labs to support its long-term development because AI drug discovery follows a different industry logic and management approach than ByteDance's core operations.
• ▪ByteDance's cloud division, Volcano Engine, will continue to provide computing power to Anew Labs after the spin-off.

Anew Labs drug pipeline

• ▪Anew Labs has led the development of structure-prediction and protein-design models, including Protenix and PXDesign, as well as a small number of drug candidates.
• ▪In April 2026, Chris Li, head of the biology department at Anew Labs, presented an AI-designed IL-17 inhibitor, one of the unit's four drug candidates, at the American Association of Immunologists' meeting in Boston.