❯ ByteDance spins out AI drug developer Anew Labs, which raises $290 million at a $1.5 billion valuation

First outside roundShanghai-based Anew Labs raised $290 million in its first external financing after being separated from ByteDance, Reuters reported, citing people familiar with the matter. HSG, IDG Capital and GL Ventures led the round, with 5Y Capital as co-lead. The resulting valuation was $1.5 billion, but neither the company nor investors have publicly confirmed the transaction.

ByteDance retains controlByteDance will reportedly keep a 56% stake. Anew operates platforms for biomolecular structure prediction and design, antibody optimization and drug discovery, with offices in Shanghai, San Francisco and Singapore. Its disclosed pipeline includes a small-molecule drug, one cell-surface protein target and two undisclosed targets. The separation reflects AI drug development’s distinct research timelines and management logic.

Milestones set the priceA $1.5 billion valuation rests on platform capability and an early pipeline without public clinical data or a revenue anchor. Investors will ask when candidates enter trials, how partnership revenue is recognized and whether ByteDance control affects licensing. For Anew, drug-pipeline validation speed will determine the next financing price faster than model parameters will.

▪ SIGNALByteDance keeps control while outside capital funds long-cycle research; Anew must prove the spinout through drug milestones.