ZhiShu Biotech Secures RMB 30 Million Pre-A Financing to Advance Spinal Cord Nerve Regeneration

VCBeat learned第一时间 that Beijing Zhishu Biotechnology Co., Ltd. has recently completed a Pre-A round of financing worth 30 million RMB.This round of financing was invested by CAS Advanced Fund and related parties, with professional incubation support provided by the Shenzhen Guangming Brain Technology Industry Innovation Center (hereinafter referred to as "Brain Innovation Center").

Professor Xiaoguang Li, Chairman of Zhishu Technology, stated: Zhishu Biotechnology is dedicated to the research and development of products for repairing central nervous system injuries. It has pioneered a new model of treating central nervous system damage by activating endogenous neurogenesis to produce new neurons, fundamentally solving the medical challenge of central nervous system repair. The company has developed an innovative product for spinal cord injury treatment — the "Spinal Cord Reconstruction System." Currently, this product has completed validation at the animal level, including non-human primates, "independent third-party verification," 10 cases of investigator-initiated trials (IIT) clinical trials, and ethical approval from multiple authoritative tertiary hospitals in China. It is about to commence registration-based clinical trials. The successful launch of this product will achieve a breakthrough in the field of devices both domestically and internationally, filling a global medical gap, and enabling patients with spinal cord injuries to stand again.

Zhishu Biotechnology was founded in June 2021, dedicated to the research and development of products for repairing central nervous system injuries. It has pioneered a new approach to treating central nervous system damage by activating endogenous neurogenesis to produce new neurons.Fundamentally solving the medical challenge of central nervous system injury repair,Developed a groundbreaking product for spinal cord injury treatment —— "Spinal Cord Reconstruction System".

Spinal cord injury leads to dysfunction of various functions below the level of injury, including motor, sensory, sphincter, and reflex functions. It is a severe trauma to the central nervous system and a major cause of paralysis. Not only does it cause immense physical and psychological harm to the patient, severely affecting their quality of life, but it also imposes a tremendous economic burden on families and even the entire society. Spinal cord injury repair has long been a significant challenge for the global medical community. If breakthroughs can be achieved in clinical treatment for spinal cord injury repair and functional reconstruction, many patients with paraplegia could potentially regain the ability to walk. The social benefits and historical significance would be immeasurable.

Zhishu Biotechnology utilizes the scaffold function of biomaterials and their sustained-release capability for neurotrophic factors to enhance the collective effect of neurotrophic factors, improve the local microenvironment of injuries, fully mobilize the intrinsic regenerative capacity of the body, and elevate the quality of regeneration after central nervous system damage. Based on this, they have developed the "Spinal Cord Reconstruction System."

Biomaterials are a class of advanced technology materials used for diagnosing, treating, or replacing human tissues and organs, or enhancing their functions. They represent an emerging high-tech industry comprising medical implants, artificial organs, bioactive substances, drug delivery systems, and a series of products such as cardiac catheters, enzyme columns, and enzyme tubes used for clinical diagnosis. In the treatment of neurological diseases, the role of biomaterials is becoming increasingly important.

Protein is the primary material basis for all life activities and one of the most fundamental and important forms that constitute living organisms and exert biological effects. In the development of the nervous system and the regeneration process after injury, a series of neurotrophic factors existing in protein form play a critical role. However, the half-life of neurotrophic factors in the body is extremely short, and they are not easily retained locally. Moreover, the presence of the blood-brain barrier restricts the administration routes of neurotrophic factors and cytokines. Therefore, research on methods of administering neurotrophic factors, enabling their prolonged local retention while maintaining biological activity, represents one of the pressing issues to be addressed for clinical applications.

Zhishu Biotechnology has made a comprehensive breakthrough in the core technology of its product — long-term sustained-release technology for neurotrophic factors — and owns independent intellectual property rights, achieving groundbreaking progress in the field of spinal cord injury. The "Spinal Cord Reconstruction System" can continuously and stably release neurotrophic factors for up to 14 weeks, extending their half-life by 110,000 times. This system enables long-term, stable, and sustained delivery of neurotrophic factors to target organs surrounding the injury site, activating endogenous neurogenesis and repairing spinal cord injuries.

Currently, the product has completed animal-level validation, including non-human primates, "independent third-party verification," 10 IIT clinical trials, and ethical approvals from multiple authoritative tertiary hospitals, and is about to commence registration-based clinical trials.The successful launch of this product will achieve a zero breakthrough in devices within this field both in China and internationally, filling a global medical gap and enabling spinal cord injury patients to stand again.

Tanjing Zhong, founding partner of CAS Advanced, said:As the fund management platform under the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences (SIAT), Zhongke Advanced originates from SIAT and serves CAS. Our long-term mission has been to help scientists achieve the transformation of technological achievements. Innovative technologies in the life sciences field are one of our key investment focuses. A representative project we have invested in, Shanghai United Imaging Healthcare, has already been successfully listed. Currently, brain science, as a hot track, is also a direction we must fully support. Zhishu Biotechnology has been deeply engaged in the field of spinal cord injury for nearly 30 years, filling a global medical gap. This is a groundbreaking technology that brings hope to millions of families affected by spinal cord injuries. We have always focused on cutting-edge technologies worldwide and are highly willing to support the transformation of projects led by outstanding scientists.

Hua Zhonghua, the project leader of CAS Advanced, stated:Spinal cord injury repair remains an unresolved major medical challenge internationally. Spinal cord injuries not only cause severe physical and psychological harm to patients but also impose a tremendous economic burden on society, significantly affecting people's quality of life. Zhishu Biotechnology's spinal cord reconstruction tube technology activates endogenous neural stem cells in adults, inducing their differentiation into functional neurons that establish functional neural circuits with the patient’s spinal cord, ultimately promoting the recovery of motor functions in paralyzed patients. This approach avoids ethical disputes, immune rejection, and reduces the risk of tumor formation, making it the most ideal treatment for paralysis patients. It can greatly alleviate the burden on both society and families. We are willing to collaborate with fellow scientists to contribute to human welfare.

Gao Yusen, Investment and Operations Director of the Brain Innovation Center, stated:Zhishu Biotechnology is one of the key incubation projects of the Brain Innovation Platform. Relying on nearly 30 years of R&D accumulation by Professor Li Xiaoguang's team, the project not only has high technical barriers and solid experimental data but also possesses significant social and clinical value, with the potential to bring transformative breakthroughs in the field of nerve injury repair. In this round of financing, Zhishu attracted the favor of many well-known capital firms, and ultimately, congratulations to Zhishu for reaching this cooperation with CAS Advanced Fund! In the future, the Brain Innovation Center will continue to provide comprehensive empowerment services to Zhishu, accelerating the technology’s transition to clinical applications.

Wang Liping, researcher and director of the Brain Institute of Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, and dean of Shenzhen-Hong Kong Institute of Brain Science Innovation, commented:Brain science research is highly advanced, interdisciplinary, complex, and technologically leading. As a professional incubator in the brain and health industry, the Brain Innovation Center focuses on the key pain points of industrial transformation and development. By building a "Science-Hub-Venture" integrated platform that supports low-cost validation and high-efficiency transformation of cutting-edge technologies—including research, equipment, intellectual property, and capital—the center empowers both capital and enterprises bidirectionally to create an ecosystem for the development of the brain and health industry. Zhishu Biotechnology specializes in central nervous system regeneration and clinical transformation research, achieving world-leading results. The Brain Innovation Center will continue to empower the transformation of outstanding brain science research achievements represented by Zhishu Biotechnology, fully supporting the company to achieve leapfrog development.

Shenzhen Zhongke Advanced Industry Private Equity Fund Management Co., Ltd. (referred to as "Zhongke Advanced") was established in 2016. It is an investment management platform specializing in fund management, equity investment, mergers and acquisitions, initiated by the Shenzhen Institutes of Advanced Technology, Chinese Academy of Sciences (referred to as "Advanced Institute"). Originating from the Advanced Institute and oriented towards the Chinese Academy of Sciences, Zhongke Advanced focuses on three major sectors: life health, electronic information, new energy, and carbon neutrality. It is committed to promoting the transition of knowledge IPs within the Chinese Academy of Sciences system to IPOs in the capital market, establishing a pathway for knowledge achievements to reach the capital market, and building an ecosystem for the commercialization of scientific and technological achievements. The projects currently invested by Zhongke Advanced include: United Imaging Healthcare, Ideal Wanlihui, TianTong Vision, HiPhi Auto, People's Zhongke, Fast Semiconductor, and Zhongke Runmei.

Shenzhen Brain Science and Technology Industry Innovation Center (hereinafter referred to as "Brain Innovation Center") is a professional incubation platform built with the strong support of the Shenzhen Municipal Government and the Guangming District Government, and is technically supported and operationally managed by the Shenzhen-Hong Kong Institute of Brain Science Innovation.

The Brain Innovation Center is located in Building A, Binhai Mingzhu Industrial Park, Guangming District, Shenzhen. It boasts over 150,000 square meters of innovative space (owned + cooperative), with nearly 70,000 square meters already delivered and in use, and has established 11 shared technology platforms. Adhering to the development concept of "innovation, investment, and entrepreneurship" integration, the Brain Innovation Center empowers both capital and enterprises through a model of "sharing, innovation, and service," striving to create China's first "brain-ready入驻" industrial cultivation base.

The Brain Innovation Center fully activates upstream and downstream industrial resources by initiating the establishment of the Shenzhen Brain Science Society and the Brain Science and Brain-inspired Intelligence Industry Alliance (preparatory) with over 80 organizations. These include the Shenzhen-Hong Kong Institute of Brain Science Innovation as the initiator, joined by industry representatives such as Shenzhen Institute of Technology (in preparation), Southern University of Science and Technology, Shenzhen University, Shenzhen Bay Laboratory, Shenzhen Institute of Neuroscience, Shenzhen People's Hospital, Shenzhen Second People's Hospital, United Imaging Healthcare, Lifetech Scientific, and Yun Tian励fei, as well as professional investment institutions like Shenzhen Capital Group, Shenzhen Angel Mother Fund, Huaxing Capital, and Danlu Capital.

By adopting a model of simultaneous construction, investment, and incubation, the Brain Innovation Center, since its completion in 2022, has attracted over 30 companies to settle in Guangming District, incubated more than 60 projects with a total valuation exceeding 10 billion yuan. The nearly 70,000 square meters of space has been fully leased. The center has effectively assisted multiple resident companies in successfully connecting with upstream and downstream industry chain resources such as clinical partners, customers, and suppliers. It has also provided enterprises with various professional scientific validation and technical R&D support. Within a relatively short period, it has successfully fostered a certain level of industrial clustering effect and is expected to become an innovative demonstration hub serving the whole of China and radiating globally.