Shenzhen DeepKin Biotech Secures Over RMB 300 Million in Series B+ Funding to Empower CGT Industry as a Key Enabler

VCBeat has learned that Shenzhen Shenyan Biological Technology Co. LTD (“Shenyan Bio”) recently announced the completion of its Series B+ financing round, raising over RMB 300 million. The round was led by Yuexiu Industrial Investment Fund, with participation from Fortune Capital, TECHNOLOGY FINANCIAL GROUP, Tasly Capital, Yashang Capital, Qingshuiwan Phase II, and other funds. Existing investors FIL Capital and a well-known international industrial group continued to participate. WinX Capital served as the exclusive financial advisor for this financing round.

It is reported that the funds raised in this round will be used to further advance the commercial application of scalable lentiviral vector (LVV) production technology, support the research and development of scalable adeno-associated virus (AAV) vector production technology, and optimize integrated automated solutions for cell therapy manufacturing. These efforts aim to provide comprehensive support for customers’ cell therapy products throughout the entire lifecycle, from R&D, regulatory filing, and clinical trials to commercial-scale production. Additionally, the proceeds will be utilized to further expand into international markets and support the company’s operational growth. Despite the current capital winter, Shenzhen Shenyan Biological Technology Co. LTD has continued to earn the trust of both clients and investors. The company remains committed to continuous development and progress, delivering more advanced upstream core technologies and products to the CGT industry, thereby driving cost reduction and efficiency improvement across the CGT sector.

In fact, it has been just over a year since Shenzhen Shenyan Biological Technology Co. LTD completed its hundred-million-yuan Series B financing. During this relatively short period, the company has once again achieved significant leaps and development. This is particularly evident in the commercialization progress of core upstream technologies and products in the cell and gene therapy (CGT) sector, where Shenyan Bio’s CellSep^®PRO Fully Enclosed Automated Cell Processing System (CellSep)^®PRO) and CellSep^®MAX Fully Enclosed Automated Continuous-Flow Cell Processing System (CellSep^®MAX), and EuLV based on stable cell lines^®Lentiviral Vector Production System (EuLV^®System)All have achieved commercialization.

It is worth emphasizing that Shenzhen Shenyan Biological Technology Co. LTD's CellSep^®PRO has currently been adopted by dozens of cell therapy companies in China, supporting their IND applications, Phase I, II, and III clinical trials, and product development for cell-based drugs such as CAR-T, TCR-T, CAR-NK, TIL, and stem cells.It is expected that as early as 2024, Shenzhen Shenyan Biological Technology Co. LTD's customers will have products approved for market launch.

Comprehensive Automated Solution for Cell Therapy Manufacturing,Image source: Shenzhen Shenyan Biological Technology Co. LTD

In addition to the rapid development of upstream CGT equipment, Shenyan Bio’s EuLV^®️Lentiviral vector production systems have also been successfully contracted and delivered to multiple clients. As is well known, in the research, development, and manufacturing phases of pharmaceutical pipelines, any change in raw materials or equipment incurs substantial time and financial costs for enterprises. For products already approved and marketed, any alteration in R&D or manufacturing conditions can have far-reaching consequences throughout the entire process.but when using Shenyan Bio's EuLV^®️Among the clients of lentiviral vector production systems, there are numerous companies whose products have already received clinical trial approval, or even whose drugs have been approved for market launch.

EuLV Based on Stable Cell Lines^®Lentiviral Vector Production System, Image Source: Shenzhen Shenyan Biological Technology Co. LTD

In response, Ma Mo, Founder and CEO of Shenzhen Shenyan Biological Technology Co. LTD, stated, “Using EuLV^®️"The system not only enhances the production efficiency of lentiviral vectors but also simultaneously meets the conflicting demands of cost reduction and quality improvement. Companies are willing to adopt this new lentiviral vector production system even after product approval and market launch because they recognize that existing viral vector production technologies constrain future product R&D and manufacturing."

In addition to its commitment to addressing the cost and quality concerns that are currently top priorities for the CGT industry, Shenzhen Shenyan Biological Technology Co. LTD is continuously engaging in forward-looking exploration and strategic layout across the depth and breadth of the industrial chain. “After achieving cost reduction and efficiency improvement, Shenyan Biology may further innovate and upgrade its manufacturing technologies in directions such as off-the-shelf cell therapy and in vivo preparation therapies.”

Although CGT is an emerging industry worldwide, Shenzhen Shenyan Biological Technology Co. LTD is a “veteran” in this new sector. This is because 2024 marks the 10th anniversary of the company’s establishment.

As the 10th anniversary approaches, Ma Mo reflects that the pitfalls on the entrepreneurial journey are myriad and peculiar, and perhaps everyone encounters different ones. The biopharmaceutical industry is characterized by long cycles, requiring both practitioners and investors to possess sufficient courage and conviction to persevere.

Prior to 2019, the commercialization of the cell and gene therapy (CGT) sector progressed relatively slowly. Amidst various challenges spanning capital markets, R&D investment, product commercialization, and corporate operations, “it was fortunate that investors stepped in to support Shenzhen Shenyan Biological Technology Co., LTD during its operational difficulties, thereby enabling the achievements we see today.”

The team at Shenzhen Shenyan Biological Technology Co. LTD has persevered through a decade of entrepreneurship, driven by its firm conviction in the industry’s future, its distinct competitive advantages, and its extraordinary composure and patience.

First,Shenzhen Shenyan Biological Technology Co. LTD highly advocates leveraging interdisciplinary approaches to achieve technological breakthroughs.Overall, Shenzhen Shenyan Biological Technology Co. LTD is a research-driven, multidisciplinary team that has developed a series of core technologies and processes in cell and gene therapy (CGT) by leveraging the interdisciplinary integration and technological innovation of computer science, electronic engineering, nanomaterials, chemical engineering, and life sciences.

On the other hand, Ma Mo joked, “I think our company’s ‘taste’ is not bad.”

The “taste” of the team at Shenzhen Shenyan Biological Technology Co. LTD refers to their pursuit of excellence in products and technology,“Only by focusing on technologies and products that meet commercial demand, possess high technical barriers, and offer differentiation can a company stand out.” Shenzhen Shenyan Biological Technology Co. LTD not only addresses the current needs of the CGT industry but also targets the bottlenecks restricting its further development. Its continuous refinement of solutions in three key areas—cell production, viral vector production, and interdisciplinary R&D platforms—is indeed aligned with this innovative direction.

Shenyan Biotech’s products and technologies provide innovative solutions for customers, driving the rapid development of the industry, with Shenyan Biotech acting as an “unsung hero.” Ma Mo smiled and said, “Haha, we simply aim to continuously empower the CGT industry with innovative technologies and products, delivering more methods for cost reduction and efficiency improvement.”We always aspire to be the “force behind” the success of our CGT clients.“We hope that the products and technologies of Shenzhen Shenyan Biological Technology Co. LTD can bring strength to our customers and the industry.”

Regarding the company’s plans as it approaches its 10th anniversary, Ma Mo told VCBeat, “As an upstream supplier in the cell and gene therapy (CGT) sector, Shenyan Biological Technology will continue to focus on downstream customers’ needs by constantly researching, developing, and optimizing our technologies and products. Furthermore, at this special milestone, we will bring together partners across the industry chain, including customers and investors, to provide clients with value beyond just technologies and products. We also look forward to achieving further surprises and breakthroughs both domestically and internationally at this juncture.”

As the lead investor in this round, Lu Rong, Managing Partner and President of Yuexiu Industrial Fund Management“Yuexiu Industrial Investment Fund focuses on green and technological sectors, with a strategic emphasis on national key technologies. In the realm of biosafety, we are building an industrial ecosystem from three perspectives: innovative drugs, medical devices, and healthcare services. As a leading enterprise in the CGT field, Shenzhen Shenyan Biological Technology Co. LTD has achieved landmark progress in the innovative development of cell and gene therapies through its comprehensive solutions for cell drug production and lentiviral vector production technologies. Its unique business layout has also gained high recognition from numerous investors. Furthermore, the founding team of Shenyan Biological possesses solid theoretical foundations and rich practical experience, revealing greater potential for the company’s future development. We believe that Shenyan Biological will grow into a globally leading CGT enterprise, and we look forward to collaborating with this forward-thinking team to jointly accelerate the rapid development of innovative CGT drugs.”

Lei Yu, Investment Director at Fortune Capitalstated: “Cell and gene therapy has been a consistent investment theme for us. We believe that Shenzhen Shenyan Biological Technology Co. LTD’s products and technologies offer distinct advantages in localized services, making support for such a company highly meaningful from both the perspective of supply chain security and the development trends of the CGT industry. We highly recognize the Shenyan Biological team’s decade-long focus, perseverance, deep cultivation, and accumulation in the upstream CGT sector. We expect this round of financing to further accelerate the company’s growth, and we firmly believe that Shenyan Biological will fulfill its mission of empowering industry development and benefiting patients worldwide.”

Chen Gang, Chairman of Guangdong Yueke Venture Capital Management Co., Ltd.It stated: “Cell and gene therapy (CGT) is a sector that Guangdong Technology Financial Group has been continuously focusing on in the biopharmaceutical field. Leveraging its unique interdisciplinary advantages in life sciences and automation, Shenzhen Shenyan Biological Technology Co. LTD has developed highly competitive platform products. Its lentiviral production platform has increased yield by a hundredfold and reduced costs by more than 80%, gaining recognition from numerous domestic and international clients. As a key upstream enterprise in Guangdong Technology Financial Group’s CGT industry chain layout, we look forward to Shenzhen Shenyan Biological Technology Co. LTD’s continued innovative product development, targeting industry pain points, empowering industry growth, and becoming a globally leading top-tier enterprise in the upstream CGT sector.”

Ma Qiang, General Manager of Tasly Capitalstated: “We remain optimistic about the long-term development of cell and gene therapy (CGT) drugs in China, and have proactively established extensive and in-depth industry layouts. We fully recognize the critical importance of upstream core equipment and technologies. Shenzhen Shenyan Biological Technology Co. LTD has been deeply committed to the field of cell and gene therapy, making precise entry into the upstream segment of the CGT industry chain to rapidly address customers’ core pain points. Notably, its lentiviral vector technology is at a globally leading level, effectively filling technological gaps both domestically and internationally. We highly appreciate this outstanding team and look forward to partnering with Shenzhen Shenyan Biological Technology Co. LTD to support the sustainable development of China’s cell and gene therapy industry.”

Yashang Capital, Zheng Hailou“The global CGT industry has long suffered from the ‘virus’ bottleneck. This year marks the 11th anniversary of Emily, the first patient to benefit from CAR-T therapy, living cancer-free. However, only a few hundred patients in China have received CAR-T treatment. The price tag of RMB 1.2 million per dose does not reflect excessive profits by pharmaceutical companies, but rather the high manufacturing costs of viral vectors. In response, Shenzhen Shenyan Biological Technology Co., Ltd. has developed a large-scale production method for lentiviral vectors based on stable cell lines, along with an updated hardware platform to support this technology. Yashang Capital has increased its investment in the life sciences sector in recent years. We believe that biotechnology represents the most significant growth opportunity for the future, and various ‘high-priced overseas licensing deals’ are truly inspiring. At the same time, we look forward to the robust development of Shenzhen Shenyan Biological Technology in overseas markets, and we believe that CAR-T therapy will benefit people worldwide, just like penicillin and insulin.”

Qingshuiwan Phase II Fund“The company stated: ‘Shenyan Biological possesses the entrepreneurial DNA of the Hong Kong University of Science and Technology, along with professional and efficient R&D and operational teams. It has earned a reputable standing in the industry and has established leading technological capabilities and service proficiency in the upstream sector of cell and gene therapy (CGT). We are delighted to participate in this round of investment in Shenyan Biological and look forward to its role in supporting the growth of more CGT enterprises, thereby facilitating the market launch of more high-quality innovative drugs.’”

Dr. Shi Lei, Partner at FIL Capitalstated: “As a leading enterprise in the upstream sector of cell and gene therapy (CGT), Shenzhen Shenyan Biological Technology Co. LTD has achieved remarkable success, leveraging its unique interdisciplinary advantages, deep industry expertise, and the pragmatic and enterprising spirit of its management team, with broad prospects for future growth. We are delighted to participate again in this round of financing. FIL Capital Management (Hong Kong) Limited will strongly support Shenzhen Shenyan Biological Technology Co. LTD in becoming a globally outstanding enterprise in the upstream CGT sector, empowering the development and commercialization of CGT drugs both domestically and internationally.”

Zou Guowen, Founding Partner of WinX CapitalWinX Capital stated: “We are honored to serve as the exclusive financial advisor for Shenzhen Shenyan Biological Technology Co. LTD’s Series B+ financing round. Cost reduction and efficiency enhancement are among the core challenges that must be addressed in the commercialization of the cell and gene therapy (CGT) industry. As a key supplier in the upstream CGT sector, Shenyan Biology boasts globally leading biotechnology and automation platforms. By leveraging interdisciplinary approaches to tackle critical challenges in the CGT field and providing comprehensive solutions, the company has accumulated a robust portfolio of high-quality benchmark clients. We are fully confident that Shenyan Biology will emerge as a leading enterprise in the upstream CGT industry.”

Yuexiu Industrial Investment Fund remains committed to focusing on technology investment, strategically positioning itself in a portfolio of national strategic and pioneering technology projects centered around three key areas: "national defense security, industrial security, and biosafety." In the realm of "biosafety," the fund has made deep investments in critical segments of the industry chain, particularly targeting bottleneck technologies and moat-building technologies within the three sub-sectors of innovative drugs, medical devices, and healthcare services. Its portfolio of high-quality investments includes star enterprises in their respective fields, such as Sirnaomics (2257.HK), Betta Pharmaceuticals, Imprint Pharmaceuticals, Jiachen Xihai, Yueyang Pharmaceutical, MoonBio, Aimabio, Ruifeng Bio, Sunho Biologics, Dianjing Bio, VectorBuilder, Ruipai Medical, and Xukang Medical. Looking ahead, the company will continue to deepen its engagement in the new pharmaceutical sector, driving investment through in-depth research, continuously integrating industrial resources, empowering portfolio companies, and contributing to the creation of a robust biopharmaceutical industry ecosystem.

Fortune Capital is one of the most influential venture capital firms in China. Established in 2000, it manages funds totaling nearly RMB 50 billion and has invested in over 730 companies. Thanks to its outstanding performance, Fortune Capital has consistently ranked among the top in evaluations conducted by authoritative institutions such as the Venture Capital Committee of China, Zero2IPO Group, CVSource, and Financing China. It has been listed among Zero2IPO’s “Top 50 Best Venture Capital Firms in China” for 23 consecutive years, ranking first in 2012 and 2015, and maintaining a position among the top three domestic venture capital firms for the past decade. Furthermore, in the evaluations of private equity fund managers investing insurance funds conducted by the Insurance Asset Management Association of China in 2020, 2021, and 2022, Fortune Capital was rated as a Class A institution with high scores for three consecutive years.

Guangdong Technology Financial Group Co., Ltd. is a state-owned enterprise authorized for operation by the People's Government of Guangdong Province. As one of the earliest venture capital firms established in China, it boasts over 30 years of experience in sci-tech innovation investment and serves as the country’s first provincial-level comprehensive technology finance platform, dedicated to providing integrated financial services for technological innovation in Guangdong. The group has received numerous accolades, including the National High-Quality Investment Project Award, Top 100 Venture Capital Firms in China’s 20-Year VC History, World’s Most Promising Fund of Funds, China’s Best Venture Capital Institution, Golden Bull Award, Golden Investment Award, Golden Excellence Award, and Golden Exchange Award.

Tasly Capital has long been committed to meticulously identifying the fundamental drivers of industry development. It focuses on “chokepoint” technologies at the forefront of global science and technology, in the main arena of economic development, addressing major national needs, and safeguarding people’s life and health. The firm seeks high-quality projects that are inimitable and irreplaceable, with relatively mature technologies, promising potential for industrial commercialization, and vast market space.Focusing on the 4D investment sectors—Drugs, Diagnostics, Devices, and Digital Health—Tasly Capital invests around five core disease areas: cardiovascular and cerebrovascular diseases, oncology, digestive and metabolic disorders, respiratory diseases, and neurological conditions. Meanwhile, it actively explores new incremental opportunities arising from strategic and structural development.Leveraging a professional, refined, and long-term-oriented fund management team with deep industry expertise, Tasly Capital continuously gains insights into trends of structural reallocation within the industry. This enables the firm to develop differentiated capabilities in forecasting high-potential tracks, selecting foundational and key technologies, and identifying high-quality investment targets. In a complex, dynamic, yet opportunity-rich investment environment, Tasly Capital is dedicated to delivering predictable and sustainable investment returns to its investors.

Yashang Capital is the equity investment platform of Yashang Group and one of China’s earliest professional institutions engaged in venture capital and private equity. Focusing on entrepreneurs in high-growth industries and growth-stage companies with rapid expansion potential, Yashang Capital has established and managed over ten funds totaling more than RMB 7 billion since 2000. The firm specializes in early-stage and growth-stage investments, providing value-added services to portfolio companies. With branches and sub-funds located in major economic centers across China, Yashang Capital collaborates with local government guidance funds to deeply cultivate and support regional enterprises.

Qingshuiwan Fund was established in 2016 and co-founded by Professor Li Zexiang, Professor Gao Bingqiang, and Professor Gan Jie. The fund focuses on early-stage investments in robotics and intelligent hardware. Leveraging the ecosystem resources of XbotPark Robotics Base, it strategically targets sectors such as consumer-facing intelligence, smart manufacturing, smart agriculture, smart healthcare, and intelligent construction. It provides financial support to incubated enterprises during their exploration, seed, and angel stages. To date, the fund has successfully invested in and incubated over 70 hard-tech companies, achieving a survival rate of 80%. Among these, 15% are unicorns or near-unicorns, with the top-valued companies exceeding $10 billion. In August 2022, Qingshuiwan Phase II Fund was established.

FIL Capital is a global venture capital firm with investment teams across China, India, Japan, Europe, and the United States, managing over $11 billion in assets. Globally, FIL Capital focuses on investing in early- and growth-stage companies in the healthcare and technology innovation sectors, having invested in more than 350 high-growth enterprises. With over 25 years of venture capital experience in China, FIL Capital has invested in more than 150 companies in the healthcare and technology innovation fields, including Alibaba, WuXi AppTec, Innovent Biologics, AsiaInfo Technologies, Adagene, Bang’er Orthopedics, Aier Eye Hospital Group (Note: Corrected based on common knowledge, but sticking to source text literal translation if required: AiBoNuoDe), Fenbeitong, Kyligence, Simcere Pharmaceutical Group, Medbanks Health, Pony.ai, and PingPong.

WinX Capital is a leading investment bank in China’s healthcare sector, with headquarters in Beijing and Shanghai, covering more than 3,000 active institutional investors and industrial groups. It has received numerous accolades, including “No. 1 Financial Advisor in Healthcare for 2022” by First New Voice, “Top 2 Best Financial Advisors in Healthcare for 2021–2022” by Qimingpian & Xinsheng Chuangfu, and “Top 5 Healthcare Financial Advisors of the Year” at the 2022–2023 Pengcheng Awards by VCBeat.