Congratulations to XtalPi on Its Successful IPO: Frees Fund Stays Research-Driven and Learns Investing Through Investments

Beijing time, June 13, 2024,FREES FUND Early Project: XtalPiOfficially listed on the Main Board of the Hong Kong Stock Exchange, with the stock code "2228.HK", becoming "The First AI Pharmaceutical Stock in China", and at the same time, it is the first company to pass the new listing rules for special technology companies on the Hong Kong Stock Exchange (referred to as "18CChapter") listed cutting-edge technology company.

Computation-Driven Biology,

From "Marginal" to "Mainstream"

Li Feng first met Wen Shuhao, the founder of XtalPi, in10Before the YearMIT-CHIEFAt a startup roadshow held in Boston, Li Feng said to this personMIT Ph.D. in PhysicsThe impression was profound, and it aligned with the direction he wanted to pursue.Computational BiologyAlso expressed strong interest and conveyed the intention to invest at that time.

At that time, what XtalPi wanted to do was to use the laws of thermodynamics to calculate the energy states between molecules.Prediction and Simulation of Different Crystal Forms of DrugsStability, in order to improve the efficiency and success rate of drug discovery. Li Feng believes that the continuous decline in computing power costs, along with the ongoing enhancement of computational capabilities, could drive advancements in these two areas.Computational BiologyThe evolution, in a broaderMaterials ScienceIt also has important value in the field.

However, in 2015 when XtalPi started and the following year 2016, whether in Boston, the global highland of the biopharmaceutical industry, orIn the industry fastThe Rapidly Developing Computational Biology Sector in China's Venture Capital CircleEmerging FieldsStill faces widespread controversy.

According to Li Feng, founding partner of Frees Fund, when it comes to the process of pharmaceutical manufacturing, people are more accustomed to...Experience and Experiment DrivenFrom the perspective of traditional biology,Physics and ComputationFrom this perspective, the general evaluation within the industry is "rather marginal" or "of limited impact."

Controversy and质疑 did not stop the three founders of XtalPi and their team. After some twists and turns, in 2016, FreeS Fund's investment in XtalPi finally materialized after Li Feng founded FreeS Capital and completed the fundraising for the US dollar fund.Freyr Capital Becomes XtalPi's Series A Investor。

After a decade of development, computation and AI-driven drug discovery (AI pharmaceuticals) has become a significant direction in the biotech field. Ma Rui, partner at Fengrui Capital, said that later, more and more people began to realize that as the cost of chips and computing power decreases according to Moore's Law, the cost of drug research and development is getting higher and higher, thus,Using computation to address drug discovery aligns with first principles.。

▲Ma Rui (fourth from the right), partner of Fengrui CapitalAt XtalPiScene of the Technology Bell-Ringing Ceremony

Learn from entrepreneurs,

Learn Investment from Investing

One of the great joys of early-stage investing is that, inWitness the founder leading the company forward and continuously overcoming challengesIn the process, we can gain insights into related industries.AndReturn on investment.

Ma Rui browsed through the chat records on WeChat. Between 2018 and 2019, he had conversations with XtalPi's three founders: Wen Shuhao, Ma Jian, and Lai Lipeng.High-frequency communicationBecause Ma Rui often travels to Boston, and XtalPi is a pioneer in Boston's startup scene, they frequently discuss some early-stage technology projects in the U.S. and often talk aboutTrends in AI Drug Discovery。

In 2019, XtalPi incubated another company from Boston.Jitai Pharmaceuticals(METiS Pharmaceuticals), Fengri became the lead investor in METiS Pharmaceuticals' first round of financing. Now, METiS Pharmaceuticals has grown into a global unicorn enterprise in the fields of delivery and mRNA. This is also an important achievement of Fengri's continuous efforts in overseas returnee entrepreneurship.

▲Founder of Agent Pharma, Cai-Da Lai (Left) &Fengrui Capital Partner Ma Rui (right)At the bell-ringing ceremony of XtalPi

From XtalPi to JiTai Pharmaceuticals, and then to four or five other different early-stage projects,AI Drug DiscoveryA distinctive feature in the investment portfolio of Fengri Capital.Interdisciplinary Innovation. In Li Feng's view, these projects can be roughly divided into two categories:

• One category isComputational BiologyIn simple terms, it is because of better computational models and algorithms, lower computational costs, and improved simulation results that we are able to computationally predict some important physical properties in the drug development process.

• Another category isDigitalization in the Biopharmaceutical Field。In fields such as pharmaceuticals and chemistry, there is a vast amount of effective data.Based on these data, new predictions and explorations that have never been seen before can be made through calculations and new methods such as AI.Google's AlphaFold is making continuous efforts in this direction to enhance the methods for humans to discover new drugs.

Not only AI pharmaceuticals, but also inspired by XtalPi, applying technological advances from other interdisciplinary fields (such as AI, semiconductors, and engineering) to biomedicine.Making biology increasingly data-driven, gradually becoming one of Frees Fund's main investment themes. Frees Fund inSemiconductor-Driven Bioelectronics(Biochip/Brain-Computer Interface), andApplying Engineering Frameworks to Biology(Systematic layouts have been made in tracks such as synthetic biology.)

Ten years to sharpen a sword,

Embarking on a New Journey

In Ma Rui's view, as one of the earliest teams able to leverage computation and AI to enhance the efficiency of drug discovery, XtalPiThe team always firmly believes in the future of AI-driven drug discovery.. It is precisely this strong determination and the ability to continuously deliver results that has enabled XtalPi to gain the support of many clients and investors.

Equally important is XtalPi's breakthrough in the data-driven direction. Having both experienced the era of AI pharmaceuticals 1.0, XtalPi and Fengrui Capital both believeThe Bottleneck of AI Drug Development Lies in DataficationWithout high-quality data, even the best models cannot be implemented. XtalPi therefore strongly promotesRobotThe process of introducing wet labs has led to the deployment of hundreds of robots of various models for chemical experiments in Shenzhen and Shanghai, creating aNew Digital and Intelligent Infrastructure; Based on this, XtalPi has gradually formedQuantum Computing + AI + RoboticsThe technical landscape has successfully caught the train of the AI Pharmaceutical 2.0 era.

In addition, XtalPi has also made extensive explorations in commercial implementation. In addition toThe Entire Process of Drug Discovery and ResearchThe different modules provide solutions, XtalPi inSmall molecules, large molecules, roboticsAll three areas of the business have seen steady growth and have gained recognition from MNCs (multinational corporations), well-known pharmaceutical companies in China, and synthetic biology enterprises.

Ma Rui believes that Gen AI (Generative AI) is the greatest technological breakthrough of this era, andAI + Biomedical is one of the most important application directions of Gen AI.. The introduction of embodied intelligence robots into biochemical laboratories and the application of generative AI in drug research and development, we look forward to seeing XtalPi continueEmpower companies in the ecosystem, continuously bringingNew Drugs and New Materials。

Congratulations on the successful listing of XtalPi! Standing at the new starting point of Hong Kong Stock Exchange's 18C, may XtalPi continueDo the Right Thing, Not the Easy Thing,To become an outstanding enterprise that values both social and commercial value。