ByteDance completes $290M fundraising for AI drug unit at $1.5B valuation

ByteDance just raised $290 million for a company most people didn’t know it had. Anew Labs, the TikTok parent’s AI drug discovery unit, closed its first external funding round at a post-money valuation of $1.5 billion, instantly minting a new unicorn in a sector where most startups spend years trying to cross that threshold. The round was led by HSG (formerly Sequoia China), IDG Capital, and Hillhouse Investment, with 5Y Capital serving as a co-lead. Gaorong Ventures, Primavera, Boyu, SBP Group, and the state-backed Shanghai Future Industries Fund also participated. From internal project to unicorn spinoff Anew Labs traces its origins to an internal AI-for-Science team that ByteDance formed back in 2021. The unit operated under Liu Kai, who brought a venture capital background to a role that was squarely focused on applying machine learning to molecular biology. The spin-off process accelerated in mid-2026. ByteDance transferred roughly 50 core personnel to Anew Labs, along with the technology stack and early-stage drug development assets the team had built. ByteDance retains a 56% controlling stake in Anew Labs following the round. The parent company also continues providing compu...