ByteDance has spun off its internal AI-for-Science team into a new company called Anew Labs. The startup, which focuses on AI-driven drug discovery, secured $290 million in its first external funding round, achieving a post-money valuation of $1,5 billion.
The investment round was led by HSG, IDG Capital, and Hillhouse Investment, with 5Y Capital acting as a co-lead. Other participants included Gaorong Ventures, Primavera, Boyu, SBP Group, and the Shanghai Future Industries Fund.
Following the transaction, ByteDance retains a 56% controlling stake in the new entity. The parent company continues to provide computational support to Anew Labs through its cloud infrastructure.
Anew Labs originated from an internal team established by ByteDance in 2021. During the spin-off process in mid-2026, approximately 50 core employees, along with the existing technology stack and drug development assets, were transferred to the new company.
The startup utilizes proprietary AI models, including Protenix and Seedfold for molecular structure prediction and PXDesign for protein engineering. In 2026, the company introduced an IL-17 small-molecule inhibitor candidate for autoimmune diseases.
