Nutshell Biotech Completes Nearly RMB 100 Million Pre-A Financing to Advance Allosteric Drug Discovery Platform

Recently, Shanghai Nutshell Biotech Co., Ltd. (Nutshell Biotech), a company dedicated to allosteric drug development, has officially completed its nearly RMB 100 million Pre-A financing round. This round was co-led by Northern Light Venture Capital and Baidu Ventures, with participation from Fangyuan Capital and Tengye Venture Capital. The funds will primarily be used for the continuous research and expansion of its allosteric technology platform, as well as to further advance the preclinical development of its self-developed allosteric drug pipeline.

NUTSHELL has long been dedicated to the research and development of small-molecule drugs based on allosteric mechanisms, boasting systematic technological expertise in allostery and a robust scientific foundation. It is one of the few biotechnology companies worldwide that possesses both an allosteric drug discovery platform and an active pipeline of First-in-Class (FIC) allosteric therapeutics.

Drug development targeting traditionally “undruggable” targets, such as enzyme agonists, selective inhibitors, and protein-protein interaction (PPI) inhibitors, has long been recognized as a major challenge in the industry. Allosteric sites are distinct from active sites and can bind small molecules to upregulate or downregulate biological functions, offering a universal approach for developing agonist drugs. Compared with highly conserved active sites, the diversity of allosteric sites confers higher selectivity and lower toxicity on allosteric agonists/inhibitors.In addition, allosteric modulators act synergistically with active-site inhibitors to mitigate and overcome the effects of drug-resistance mutations in the target.

However, the lack of a systematic and non-"random" approach to discovering allosteric regulation across various targets has remained a significant barrier hindering the application of allostery in innovative drug development. NUTSHELL pioneered the establishment and development of AlloStar, an allosteric technology-based drug discovery platform, on the global stage. By identifying allosteric sites on targets and developing allosteric modulators, NUTSHELL provides highly attractive solutions and strategies for first-in-class (FIC) drug development against undruggable targets.

Currently, the global research and development of allosteric drugs is accelerating. Several companies focused on developing small-molecule drugs based on allosteric mechanisms, such as Relay and Black Diamond in the United States, have already been listed on NASDAQ since 2020. Meanwhile, multiple small molecules targeting SHP2, TYK2, and EGFR Kinase through allosteric mechanisms have entered clinical trials respectively. These practices and achievements demonstrate the potential of allosteric drugs to overcome undruggable targets and have garnered widespread attention within the industry.

Following this round of financing, NUTSHELL will engage in in-depth collaboration with Biomap to jointly build a next-generation AI design engine for allosteric drugs. This partnership will enable NUTSHELL to accumulate expertise in cutting-edge AI technologies, providing robust support for further enhancing its capabilities in allosteric drug design.

Nordic Venture Partners, founded by Mr. Deng Feng in 2005, is a venture capital firm dedicated to “empowering world-class Chinese entrepreneurs and cultivating world-class Chinese enterprises.” The firm currently manages five US dollar funds and five RMB funds, with assets under management exceeding RMB 30 billion. It has long focused on investing in high-potential, early-stage, technology-driven companies, emphasizing “team, market, and innovation” to grow alongside its portfolio companies.

To date, Northern Light Venture Capital has invested in nearly 400 outstanding companies across the TMT, advanced technology, and healthcare sectors, including Meituan, ThunderSoft, ChineseAll, BGI Genomics, Blueport Interactive, Spreadtrum Communications, APUS, Tencent Music, Hanting Hotel, GigaDevice, Burning Rock Diagnostics, Dianrong.com, CITIC Pharmaceutical, VIPKID, Anji Microelectronics, Hillstone Networks, and Worldia. Leveraging its team’s extensive experience in entrepreneurship, investment, and management, along with the broad network and deep industry resources cultivated over years of dedicated engagement, Northern Light Venture Capital serves as a trusted partner for both startups and investors.

BV (Baidu Ventures) is an independent venture capital firm initiated by Baidu and managed by a professional team, with investors including Baidu and other leading industrial and financial institutions. BV currently manages three USD and RMB funds totaling $500 million, operating simultaneously in Beijing and San Francisco, with the ambition of becoming a world-class VC in the AI era. Committed to building a more efficient intelligent world, BV has invested in over 100 AI companies to date.

Fangyuan Capital, a subsidiary of Fangyuan Financial Group, is a professional private equity investment firm rooted in Hong Kong with a global perspective. It focuses on investing in innovative sectors such as life sciences and healthcare, and has successfully invested in outstanding companies including Jacobio Pharmaceuticals and XtalPi. Fangyuan Capital is committed to identifying and supporting exceptional entrepreneurial teams. By forging strong partnerships with leading industry players, it thoroughly identifies high-potential companies in niche markets, leverages extensive industry resources to provide deep value-added support, and accompanies them throughout their growth journey, helping them become successful enterprises with sustainable social and commercial value.

Tengye Capital focuses on early-stage investments in high-tech innovative enterprises. It manages six funds and has invested in over 30 companies. Tengye Capital boasts a professional investment management team with deep industry expertise, dedicated to identifying outstanding teams and startups with core technologies and product accumulation in emerging industries, while leveraging extensive industry resources to support their growth. Its investment sectors include biopharmaceuticals and healthcare, TMT (Technology, Media, and Telecom), new energy and environmental protection, as well as advanced manufacturing and high-end equipment. Notable portfolio companies in the healthcare sector include Gan & Lee Pharmaceuticals, Liuhe Ningyuan, PackGene Biotech, Jiabao Renhe, Jinshi Bio, Ketu Medicine, Guangwei Pharma, Zhongjing Pukang, Genewell Technologies, and Northland Biologics.

BioMap is China’s first life sciences platform company driven by biological computing technology, dedicated to accelerating the development of innovative drugs and precision life science products such as early screening and diagnostic tools through high-performance biological computing and multi-omics data technologies. It aims to make more diseases predictable, controllable, and curable, thereby realizing the vision of healthy longevity for humanity.