ByteDance's AI Drug Discovery Spin-off Anew Labs Raises $290M at $1.5B Valuation

ByteDance has raised $290 million for Anew Labs, its AI drug discovery unit, following the spin-off of the business. The funding values the Shanghai-based company at $1.5 billion, according to sources.

Anew Labs, which applies AI to drug discovery, attracted backing from Sequoia Capital China, IDG Capital, and Hillhouse Investment as lead investors, with 5Y Capital as co-lead. Other investors include Gaorong Ventures, Spring Capital, Boyu Capital, SBP Group, and Shanghai Future Industry Fund.

The spin-off is intended to better support the unit's long-term development, as AI drug discovery operates under different industry logic and management practices from ByteDance's core business. ByteDance will retain a 56% stake in Anew Labs after the transaction.