Red hot startups that VCs chase

Maternity, pediatric, health and fitness apps pique investor interest, spawn a new industry

Yang Dan, mother of a three-month-old son in Beijing, remembers relying on an array of digital apps for tips throughout her pregnancy: What to eat, when to have a checkup and how to connect with other expectant mothers.

Venture capitalists are now betting that the Communist Party of China's decision to repeal its decades-old one-child policy will create more demand for digital services like those used by Yang. The policy change announced last year has piqued investor interest and led to 10 fundraising rounds in the first half for startups in the maternity and pediatric market, according to VC Beat Research, which tracks internet health-related investment and fundraising.