MGI Tech Raised $200 million to Promote Gene Sequencing

On May 9, 2019, MGI Tech Co Ltd, a gene-sequencing equipment unit of Chinese genome giant BGI Group, has raised $200 million in new funding round from investors including Chinese investment bank CITIC Securities, according to an announcement. Green Pine Capital Partner and Shanghai-based private equity firm Orient Securities Capital Investment also participated in the round. 

According to unconfirmed media reports, the financing was much less than the $1 billion MGI was seeking in a pre-IPO round for a 20% stake of the company.

MGI Tech Company, a Shenzhen maker of gene sequencing machines, is a subsidiary of BGI, China's largest sequencing services provider. Founded in 2016, MGI is dedicated to offering a China alternative to international gene sequencing makers. The company is committed to enabling effective and affordable healthcare solutions for all. Based on its proprietary technology, MGI produces sequencing devices, equipment, consumables, and reagents to support life science research, medicine, and healthcare. 

MGI Tech has launched a number of cross-omics platform projects, including sequencing platform, mass spectrometry platform, image platform, and other directions. And the company holds the core technology of Complete Genomics for autonomous control of gene sequencing tools to have their own core patents, matching reagents，biochemical reaction system.

In recent years, with the rapid development of gene sequencing technology, the global market is shifting from scientific research to clinical and market size has entered an increasing phase. 

So far, the global installed capacity of MGI Tech has exceeded 1100 units, covering 16 countries and regions, with more than 300 users and accumulated output data of more than 20PB. In addition, its revenue has grown at a compound rate of more than 200 percent over the past three years, and it has captured about a third of the Chinese gene sequencer market.

Goldstone Investment Limited is the private investment fund management subsidiary of CITIC Securities Co. Ltd. It was incorporated in October 2007 and aims at conducting an experiment to allow selected securities houses engaging in direct investment operations. Goldstone’s registered capital is RMB 3 billion. 

Shenzhen Green Pine Capital Partners Co. Ltd. (“GPCP”) was established in 2007, with the investment team assembled in 2000. GPCP is one of the most time-honored Chinese VC companies that boast experience in areas such as biotech, new materials, new resources and AI, etc. Currently, GPCP manages assets over 15 billion RMB through 21 special funds and have invested 7 billion RMB into 388 enterprises among which 14 are listed on NEEQ and 48 of them are either listed or acquired by listed companies, including BGI(300676.SZ), Aurora(600666.SH), Nationz Tech(300077.SZ), Foresee(002530.SZ), Qudian(NASDAQ:QD), etc. GPCP invested in the angel round of BGI (Beijing Genomics Institute), Royole, Kuang-Chi, Appotronics, BMF, C-one, Arrayed Materials, and other star enterprises.