Chengyuan Bio (RootPath) Secures Tens of Millions in RMB in Equity Financing to Drive Down Gene Synthesis Costs and Accelerate Commercialization, with WinX Capital as Exclusive Financial Advisor

Recently, Chengyuan Biotechnology (Chengdu Root Directory Biotechnology Co., Ltd., hereinafter referred to as the “Company”) announced the completion of a tens-of-millions-yuan equity financing round. The round was led by YuanBio Venture Capital, with participation from Guanghua Wutong and Sichuan Venture Capital. WinX Capital served as the exclusive financial advisor.The company will continue to deepen its strategic layout in the field of gene synthesis. The funds raised in this round of financing will be primarily used to continuously upgrade the company’s gene synthesis technology platform, further expand its intelligent and automated mass production platform, and accelerate commercialization.

In fields such as biomanufacturing and life sciences, the cost of gene synthesis has remained persistently high. Although short-fragment synthesis technologies have seen significant breakthroughs in recent years, accurately and cost-effectively assembling them into long genes and obtaining plasmids with error-free sequences remain major challenges within the industry.

Within just a few years, the company has established its core technology platforms for Pathfinder DNA assembly and Molecular Toothpick. It has successfully launched customized gene libraries to the market, reducing the cost of de novo synthesis of long-fragment genes by more than half, and has secured industrial and research clients across numerous fields, including metabolic engineering and biopharmaceuticals.

The Custom Gene Library is manufactured by the company using its proprietary Pathfinder DNA Assembly Technology. Dr. Chen Xi, the company’s founder, and his team conducted years of intensive research to successfully demonstrate that processes such as DNA folding, hybridization, and enzymatic ligation can be predicted with sufficient precision and accuracy through simulation algorithms. Empowered by these simulation algorithms, the company achieves high-throughput and low-cost gene synthesis. Unlike traditional techniques, the Pathfinder DNA Assembly Technology enables the parallel assembly of thousands of gene fragments within a single reactor, significantly reducing assembly costs. Nevertheless, the final deliverable remains consistent with conventional gene synthesis: sequence-verified plasmids obtained after E. coli colony picking, thereby ensuring product quality.

The company offers a variety of plasmid vector options, including standard vectors such as pUC19, pET, and pcDNA, and also supports customer-supplied vectors. The insert gene length ranges from 450 bp to 10 kb, meeting the requirements of the vast majority of projects.

Dr. Chen Xi, Founder and CEOHe stated, “We extend our sincere gratitude to the investors in this round for their strong support of the company, and we also thank all existing shareholders for their trust. We hope that our products will make many scientific research topics and projects—once desired but unattainable—a reality, thereby injecting new vitality into innovation in the fields of biomanufacturing and life sciences. Moving forward, we will continue to strive to reduce costs and shorten delivery cycles, providing better products and services.”

YuanBio Venture CapitalIt was stated that gene synthesis is a core foundational technology in the life sciences sector, with extensive downstream vertical application scenarios; however, its adoption has long been constrained by high costs. Leveraging years of deep expertise in DNA biophysics and molecular programming, the founding team of Hangzhou Chengyuan Biotechnology Co., Ltd. has broken through the “cost-accuracy” bottleneck in gene synthesis. By employing innovative technologies, they have significantly reduced the cost of long-gene synthesis to an industry-leading level while maintaining exceptionally high accuracy. This breakthrough is poised to drive scalable applications in fields such as antibody drug development, agricultural genetic improvement, and industrial enzyme design. We look forward to the company continuing to drive a revolution in gene synthesis costs through technological innovation, growing into a global industry benchmark in the field of gene synthesis, and injecting core momentum into the development of synthetic biology and the broader life sciences sector.

Xiang Wentian, Managing Director of Guanghua WutongIt was stated that gene synthesis is a critical foundational enabling technology in the life sciences sector, but its persistently high costs have significantly constrained the field’s development. The team at Hangzhou Chengyuan Biotechnology Co., Ltd. has been deeply engaged in gene synthesis for many years, achieving multiple breakthrough innovations in key technologies. These advancements have substantially reduced the cost of gene synthesis while ensuring high accuracy. We look forward to the company continuing to establish its roots in Wenjiang, emerging as a leading enterprise in the gene synthesis sector at an early date, and contributing to the sustained development of the life sciences industry.

Yu Yan, Investment Director at Sichuan Venture CapitalIt indicates that with the advancement of technologies such as next-generation sequencing, single-cell sequencing, and generative artificial intelligence (generative AI), scientists are able to access an increasing number of candidate genes. The company’s globally leading PathFinder DNA Assembly gene synthesis technology platform, combined with rigorous subsequent colony picking and sequence verification, enables the delivery of high-quality genes to customers at a very low cost. This allows customers to easily conduct research requiring the synthesis of hundreds or even thousands of custom genes, which is a factor we view very favorably. We believe that Root Directory Biology can rapidly grow into a benchmark enterprise in the field of synthetic biology.

WinX CapitalStatement: It is a great honor to support the company in securing its financing. The cost of gene synthesis has long been a significant constraint on innovation in the life sciences. The company’s custom gene library can efficiently and promptly meet diverse customer needs while substantially reducing R&D costs. We believe that, leveraging its advanced technology platform, competitive product portfolio, and the management team’s extensive industry experience, the company will accelerate its commercialization process and grow into a globally leading gene synthesis enterprise.

YuanBio Venture Capital is an investment firm focused on the early and growth stages of the healthcare sector, headquartered in Suzhou BioBAY with a global reach. To date, it has invested in over 200 outstanding companies in the life and health sectors, covering four key areas: innovative drug development, medical devices, in vitro diagnostics and precision medicine, as well as healthcare services. The firm has achieved substantial investment returns, with 19 of its portfolio companies having listed on capital markets such as the Hong Kong Stock Exchange and the STAR Market. YuanBio Venture Capital has been repeatedly ranked among the Top 10 venture capital funds in China’s healthcare sector and recognized as one of the most active healthcare investment institutions in China. By bringing together seasoned professional investors and a team of world-class scientific advisors, YuanBio Venture Capital possesses extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry and beyond. Leveraging its professionalism, focus, and abundant industry resources, YuanBio Venture Capital is committed to becoming one of the most successful healthcare and pharmaceutical venture capital funds in China.

Chengdu Guanghua Wutong Equity Investment Fund Management Co., Ltd. is headquartered in the Wenjiang District of Chengdu and specializes in the operation of government industrial investment funds as well as the management of market-oriented fund investments. Adhering to a business philosophy centered on focus, professionalism, and sincerity, the company strategically builds its fund ecosystem through a “Fund of Funds (FOF) + Direct Investment” model. By engaging in meticulous cultivation and executing high-efficiency investments, it strives to empower industrial development. Currently, the company manages assets under management (AUM) of approximately RMB 9 billion. In collaboration with leading enterprises, listed companies, and investment institutions, it has established over 20 investment funds with a total scale exceeding RMB 46 billion, covering investment stages across the entire corporate lifecycle. As one of its key investment focuses, the life sciences sector has seen Guanghua Wutong Fund invest in multiple high-growth innovative pharmaceutical and high-end medical device companies characterized by breakthrough technologies, including Kelun-Biotech (HK.06990), Fulian Technology, Tongrui Biopharma, Jinjiang Electronics, and Haijieya Medical, thereby aggregating rich industry resources.

Sichuan Venture Capital, an affiliate of Sichuan Industrial Revitalization Fund Group, is a professional institution primarily engaged in equity investment and management. It focuses on investing in high-tech enterprises with independent innovation capabilities, emerging industry companies, and enterprises undergoing transformation and upgrading. Its investment scope covers key sectors such as biopharmaceuticals, electronic information, and high-end intelligent manufacturing. Currently, Sichuan Venture Capital manages two provincial-level guidance funds established under the leadership of the Sichuan Provincial Government: the Sichuan Provincial Innovation and Entrepreneurship Equity Investment Fund and the Sichuan Provincial Scientific and Technological Achievement Transformation Equity Investment Fund. The firm has sequentially established six regional sub-funds in the Sichuan Comprehensive Innovation Reform Zone, China (Mianyang) Science and Technology City, Sichuan Pilot Free Trade Zone, and Southern Sichuan Economic Zone. Additionally, it has partnered with leading domestic investment institutions to initiate eight industry-specific sub-funds and four specialized sub-funds. With nearly RMB 10 billion in assets under management, Sichuan Venture Capital has initially formed an investment and service network deeply rooted in Sichuan and extending across China.

WinX Capital is a leading investment bank in China’s healthcare and wellness industry, with headquarters in Beijing and Shanghai, and offices in Shenzhen and Hangzhou. It has received numerous accolades, including Qimingpian’s “No. 1 Financial Advisor in Healthcare for 2024,” First New Voice’s “No. 1 Financial Advisory Firm in Healthcare (2022–2024),” and VCBeat’s “Annual Healthcare Financial Advisor among the Future Healthcare 100 (2022–2024).”