Xellar Biosystems Secures Hundreds of Millions RMB in Pre-A Funding to Advance AI-Powered Organoid-on-a-Chip Platform for Drug Discovery

VCBeat has learned that the innovative biotech companyXellar Biosystems recently announced the completion of its Angel+ round financing, amounting to hundreds of millions of RMB. The round was led by TriApex Group, with participation from Zhengxuan Investment and Tiantu Capital, while existing shareholders Legend Capital and Yayi Capital continued to increase their investments.This round of financing will enable Xellar Biosystems to further develop its AI-powered organ-on-a-chip technology platform and drive its in-depth application in new drug development.

Xellar Biosystems was founded in Boston, USA, at the end of 2021, and isThe world’s first biotech startup to integrate organ-on-a-chip, high-content 3D cell imaging, computer vision (CV), and artificial intelligence (AI) technologies for drug discovery: “3D-Wet-AI.”In August 2022, Xellar Biosystems completed a $10 million angel financing round invested by Legend Capital, ZhenFund, and Yayi Capital.

Since 2023, Xellar Biosystems, as the sole high-throughput organ-on-a-chip company, has participated in the OASIS Consortium—the world’s most extensive and authoritative consortium jointly initiated by the U.S. FDA, EPA, and more than ten multinational pharmaceutical companies—engaging in collaborative projects to develop next-generation preclinical drug toxicity prediction tools and in the formulation of related standards.This project aims to leverage AI technology based on cell morphology and multimodal preclinical models (including cell lines, animal cells, animal models, primary cells, and human organ-on-a-chip systems) to jointly develop a more efficient next-generation preclinical drug safety evaluation system.

Xellar Biosystems’ innovation lies in integrating high-throughput organ-on-a-chip technology, cell morphological analysis, multi-omics approaches, and AI-driven cell morphology-based technologies. By generating 3D cellular images through large-scale organ-on-a-chip platforms and constructing complex interaction networks between gene clusters and compound structures, the company provides more accurate models for disease assessment and drug efficacy evaluation. Furthermore, leveraging AI technology enables rapid identification of candidate drugs with the greatest development value and potential. Currently, Xellar Biosystems has established strategic partnerships or business collaborations with numerous renowned domestic and international pharmaceutical companies and research institutions. It is reported that the company is also actively advancing collaborations with global industry leaders in the cosmetics and food sectors.

Xellar Biosystems’ “3D-Wet-AI” integrated dry-and-wet R&D paradigm for new drug development has also garnered favor from international tech giants.Google provided Xellar Biosystems with RMB 2.25 million in free computing power support, while NVIDIA invited the company to join its Inception Program for AI startups.The aforementioned support has collectively facilitated the establishment and refinement of Xellar Biosystems’ database and computing platform, further advancing its research and applications in the fields of biomedical big data and AI.

This financing will enable Xellar Biosystems to focus more intently on building preclinical models for specific diseases and developing its AI-driven drug screening platform, continuously strengthen its talent pipeline, expand chip production capacity and testing throughput, and persist in developing internationally leading cutting-edge technologies. These efforts will drive the industrial application of AI-integrated organ-on-a-chip technology and ultimately accelerate new drug development. Xellar Biosystems’ innovative technologies and rapid growth are bringing revolutionary changes to the field of new drug R&D, and we look forward to witnessing more breakthrough achievements.

Xie Xin, Chairman and CEO of Xellar BiosystemsHe stated, “We are deeply grateful to the investors for their recognition of our ‘3D-Wet-AI’ technology route, which combines organ-on-a-chip with artificial intelligence to drive new drug development, as well as for their trust in the Xellar team. We also extend our sincere appreciation to our existing shareholders for their continued and steadfast support. Following this round of financing, Xellar will continue to advance collaborations with domestic and international regulatory authorities, while focusing on specific disease areas to continuously enhance the global competitiveness of its organ-on-a-chip technology. We are committed to delivering greater clinical benefits to more patients and creating greater economic value.”

Zhang Xuefeng, CEO of Tripod Group“It stated: ‘As a novel CRO empowering R&D in specialized disease areas, Tripod Preclinical Research Laboratories Co., Ltd. (Tripod Group) continuously monitors technological innovations in the pharmaceutical sector and is committed to building a comprehensive preclinical multimodal evaluation system that spans cells, tissues, organ-on-a-chip models, and animal studies, while integrating computer vision and artificial intelligence. Xellar Biosystems has accumulated substantial technical expertise and established a long-term strategic layout in combining organ-on-a-chip technology with AI. Its focus on constructing preclinical models for specialized diseases and developing AI-driven drug screening platforms aligns precisely with the key technological directions Tripod Group seeks for collaborative partnerships to achieve complementary synergies. Tripod Group will further deepen its R&D collaboration with Xellar Biosystems to jointly advance the refinement of the preclinical multimodal evaluation system, striving to promote the in-depth application of organ-on-a-chip technology in regulatory science research and empower the development and innovative translation of more new drugs.’”

Li Ying, Zhengxuan Investment“The clinical development phase of drug R&D involves substantial investment. To mitigate the risks associated with clinical trials, leveraging new technologies and multimodal models for drug screening helps shift risk identification upstream, reduce costs, and enhance efficiency. Xellar Biosystems boasts a renowned team of industry experts with interdisciplinary backgrounds, a robust organizational structure, and extensive experience. As the world’s first company to integrate AI with organ-on-a-chip technology, it has successfully established multicellular 3D humanized preclinical models and possesses end-to-end (organ-on-a-chip–biological model–AI) platform-level R&D capabilities. This represents a frontier technology and an application of AI for Science that Shenzhen Zhengxuan Investment Co., Ltd. continues to closely monitor. The company has chosen a long and arduous path, yet one that is essential for technological internationalization, positioning it to become a global leader in the AI-powered organ-on-a-chip industry.”

Wei Guoxing, Partner at TIANTU CAPITALstated: “We are delighted to see Xellar Biosystems providing innovative solutions in areas such as drug development, toxicity and efficacy testing, and skin and cosmetic raw material testing. Globally, the biopharmaceutical and consumer goods industries are undergoing a historic shift away from animal testing. There has long been a lack of effective alternatives to animal experiments for assessing product safety. Xellar Biosystems’ internationally leading research and applications in biomedical big data and artificial intelligence are characterized by high technology, high efficiency, and high quality. We firmly believe that Xellar Biosystems will become a new form of productive force driving the industry’s green development, leading us toward a more environmentally friendly, humane, and technology-driven future.”

Legend Capital“Organ-on-a-chip technology is continuously being optimized and empowering drug R&D. The team at Xellar Biosystems has deeply cultivated the foundational technologies of organ-on-a-chip, while possessing extensive industry experience and keen business acumen. As one of the angel-round investors, we are delighted to witness the company’s continuous breakthroughs, its establishment of close collaborations with multiple multinational pharmaceutical companies, regulatory agencies, and leading industry organizations, as well as its implementation of proactive and flexible business development strategies to maintain a leading position in this field. We have increased our investment in this financing round, believing that Xellar Biosystems will become one of the global leaders in the organ-on-a-chip sector and play a significant role in advancing the application of organ-on-a-chip technology in drug development.”

Liu Chong, Founding Partner of Yayi CapitalThe statement reads: “Driven by the dual forces of industry demand and regulatory policies, the global organ-on-a-chip market is experiencing rapid growth, presenting significant opportunities for expansion. Xellar Biosystems has swiftly capitalized on this momentum, continuously advancing its global expansion strategy. Since our angel investment, Xellar Biosystems has achieved a series of notable milestones, gaining recognition from internationally renowned pharmaceutical companies. We are confident that, under the leadership of Dr. Xie Xin and his team, Xellar Biosystems will continue to break new ground and empower global drug development.”

Tripod Preclinical Research Laboratories Co., Ltd. was established in 2008 as a novel CRO dedicated to providing integrated R&D enablement in specialized therapeutic areas for global pharmaceutical companies and research institutions. Adhering to the core values of integrity, dedication, collaboration, and excellence, Tripod Group is committed to its mission of rigorous scientific evaluation, facilitating innovative translation, and improving quality of life. Leveraging a technically proficient team with deep industry expertise and implementing highly scientific and specialized operational strategies, the Group has established and refined a centralized management system, focusing on delivering comprehensive empowerment across the entire spectrum from disease mechanisms and disease models to non-clinical studies, clinical medicine, and clinical translation.

Shenzhen Zhengxuan Investment Co., Ltd. was established in June 2003 and has been dedicated to investing in high-tech and innovative enterprises since 2010. The company’s chairman, Mr. Xia Zuoquan, is one of the founders of BYD (stock code: 002594). Adhering to the investment philosophy of “integrity, professionalism, innovation, and win-win cooperation,” Zhengxuan Investment focuses on hard technology and import substitution, driving the development of China’s high-tech industry across sectors such as advanced manufacturing, artificial intelligence and robotics, aerospace, TMT, new energy, new materials, electronic chips, and enterprise services.

TIANTU CAPITAL, founded in 2002, is one of the earliest professional equity investment firms in China. Adhering to a path of in-depth research and specialization, it boasts a professional investment and research team of dozens of members. To date, its cumulative assets under management have exceeded RMB 25 billion, with investments in over 200 companies, including more than 20 in the life sciences sector. Its investment portfolio includes Zhuozheng Medical, XBiome, ZuoDian, Boyin Bio, Xige Life Sciences, Lemeng Biotech, China Feihe, Nayuki, Pagoda, Xiaohongshu, and AiHuiShou.

Legend Capital, established in April 2001, is a leading professional investment firm in China specializing in early-stage venture capital and growth-stage private equity. Over its more than two decades of development, Legend Capital has adhered to international best practices, successfully managed multiple funds through their full life cycles, and delivered strong, sustainable fund performance. To date, it has invested in over 600 companies, with 110 achieving exits through initial public offerings (IPOs) on various global capital markets and nearly 100 exiting via mergers and acquisitions. Its portfolio includes world-class enterprises such as iFlytek, Contemporary Amperex Technology Co., Limited (CATL), WuXi AppTec, and Pharmaron, as well as numerous national-level “Specialized, Refined, Differential, and Innovative” Little Giants and manufacturing single-champion companies, thereby building a rich ecosystem of industrial resources.

Yayi Capital was established in 2018, with its primary investment areas encompassing artificial intelligence, life sciences, and synthetic biology. The firm has been deeply committed to the healthcare and life health sectors, systematically laying out investments across multiple sub-sectors, including innovative drugs, medical devices, in vitro diagnostics (IVD), consumer healthcare, and AI-integrated biotechnology. Yayi Capital is dedicated to serving outstanding entrepreneurial teams, working closely with founders to cultivate high-quality new productive forces, and leveraging its professional expertise to channel more long-term and patient capital into technological innovation.