Yuanyu Bio Completes Nearly RMB 100 Million Series A Financing to Advance Microalgae-Based Synthetic Biology Ingredients

VCBeat has learned that Beijing Yuanyu Biotechnology Co., Ltd. (“Yuanyu Biotech”) has announced the completion of its Series A financing round, raising nearly RMB 100 million. The round was led by Hengxu Capital, with participation from Houshi Investment and Yazhou Bay Venture Capital. Multi-Dimension Capital served as the exclusive financial advisor for this financing round.

This round of financing will accelerate the company’s pipeline development, scaled mass production, application scenario expansion, and market growth both domestically and internationally in the field of microalgae synthetic biology ingredients. Beijing Yuanyu Biotechnology Co., Ltd. will continue to provide global customers with a stable supply of high-quality microalgae-based ingredients and diversified application solutions. By establishing a closed-loop green microalgae industry across human health, personal care, animal and plant nutrition, and novel alternative food resources for human consumption, the company aims to become the world’s leading supplier of microalgae-based ingredients and application solutions.

PROTOGA, established in 2021, is a next-generation synthetic biology company and one of the few capable of exploring and creating microalgae-based ingredients at the molecular level and achieving large-scale industrial production. The application of microalgae-based ingredients has been constrained by production capacity, resulting in generally high raw material prices and significant potential for market expansion. As a rare microalgae synthetic biology enterprise in China, PROTOGA has always prioritized the independent development of key core technologies, integrating them firmly into its strategic development philosophy. The company has invested tens of millions of yuan to build a microalgae synthetic biology R&D platform and a pilot-scale platform, successfully advancing several algal strains to the stage of large-scale production.

In addition, the company is actively promoting the registration of more microalgae-based raw materials as new resource food ingredients. After two years of dedicated efforts, beyond technological and process R&D, bridging the gap between bio-based production and end-use applications, as well as expanding into incremental markets, have also become key priorities for Yuanyu. Beijing Yuanyu Biotechnology Co., Ltd. remains committed to leveraging microalgae cell factories to address bottlenecks in bio-based raw materials and achieve domestic substitution of critical ingredients, thereby providing stable, high-quality alternatives for the food, general health, and pharmaceutical industries.

Regarding this round of financing,Dr. Xiao Yibo, Founder of Yuanyu Biotechnology“The statement reads: ‘Microalgae are among the oldest organisms on Earth. Capable of synthesizing higher-value products using carbon dioxide or simple organic carbon sources, they represent an ideal chassis cell with the highest environmental friendliness and the lowest extreme production costs. Yuanyu Biotechnology focuses on four types of microalgal resources: Chlorella sp. for alternative protein, photosynthetic chassis Chlamydomonas sp. for synthetic biology technologies, exploration and utilization of microalgal genetic resources, and discovery of novel microalgae in special environments. Yuanyu Biotechnology has completed pilot-scale fermentation for several microalgal strains and is about to enter the industrial production phase. Meanwhile, the company has deployed unique microalgal production models, such as photoautotrophic cultivation and photosynthetic fermentation, which will play a significant role in its multi-product portfolio. The company has secured multiple intellectual property rights in core technological areas and has obtained certifications from professional domestic and international institutions in areas including certification licensing and system management. Yuanyu Biotechnology is honored to have gained recognition from professional investment institutions such as Hengxu Capital, Houshi Investment, and Yazhou Bay Venture Capital. With the support of this round of financing, Yuanyu Biotechnology will continue to leverage its unique technological advantages in the field of microalgal synthetic biology, contributing its distinct energy to the growth of China’s microalgal industry.’”

Lu Yongtao, Chairman of Hengxu CapitalHe stated, “Microalgae production features low energy consumption, high yield per unit area, and low barriers to industrialization, enabling carbon-sequestering, environmentally friendly production under the policy framework of carbon neutrality. Meanwhile, its abundant species resources, direct and efficient product generation, and wide-ranging applications of metabolites make it the most suitable biological carrier for the development of the bioeconomy. Our team members have been deeply engaged in the field of microalgae for decades, achieving fruitful results in research on microalgae cultivation, metabolism, genetics, synthetic biology, as well as the development and application of microalgae biotechnology. Hengxu Capital is honored to lead this round of financing and looks forward to the company, as an emerging star in microalgae synthetic biology, bringing more high-quality products to consumers.”

Wu Bi, Founding Partner of Houshi Investmentstated: “Yuanyu Biotechnology is a supplier of microalgae-based green products empowered by biotechnology. We consider the company to be among the first-tier teams in China in the development, engineering, and utilization of microalgae. By leveraging cutting-edge interdisciplinary technologies to engineer microalgae cells, it can effectively address numerous bioeconomy challenges, such as protein shortages, non-grain alternatives, antibiotic reduction, plastic restrictions, and carbon neutrality. Currently, the company has entered the consumer sector through food, health supplements, and cosmetics, developing mass-producible, green, and safe microalgae-based raw materials such as proteins and astaxanthin. Its product portfolio is expected to expand further into agriculture, industry, healthcare, and other fields in the future. We are honored to invest in the Yuanyu Biotechnology team and look forward to the company leveraging its accumulated biotechnological expertise in microalgae to provide more high-quality, green raw material products across various industries, thereby becoming a star enterprise in microalgae-based biomanufacturing at an early stage.”

Yazhou Bay Venture Capital“The Sanya Yazhou Bay Venture Capital Co., Ltd. undertakes the industrial investment functions of the Sanya Yazhou Bay Science and Technology City Development and Construction Co., Ltd., focusing on investments in three major industries: Nanfan (seed breeding), deep-sea technology, and life sciences. Beijing Yuanyu Biotechnology Co., Ltd. possesses unique advantages in the research, development, and industrialized production of microalgae. Our investment in Yuanyu Biotechnology will accelerate and support Hainan’s construction and development of marine biological extraction and algae-based platforms.”

Shanghai SAIC Hengxu Investment Management Co., Ltd. (“Hengxu Capital”; AMAC Registration No.: P1070270) was established in 2019. As a private equity investment institution under Shanghai Automotive Group Financial Holdings Management Co., Ltd. (“SAIC Financial Holdings”), the financial platform of Shanghai Automotive Industry Corporation (“SAIC Motor”), the company leverages SAIC Motor’s comprehensive industrial advantages and the efficient synergistic empowerment of SAIC Financial Holdings. With the objective of maximizing investor returns, Hengxu Capital strategically invests in emerging industries such as green mobility, mobility ecosystems, and health ecosystems. It contributes to the development of SAIC Motor’s innovative industrial chain and the enhancement of its mobility ecosystem, striving to become a respected premier industrial capital firm and a trusted first-class investment institution.

Hainan Houshi Private Equity Fund Management Co., Ltd. is a specialized, market-oriented industrial investment institution established under Chongqing Jindi Gas Group Co., Ltd., focusing on early-stage investments in biotechnology, new materials, intelligent manufacturing, and agricultural technology. The actual controller of Houshi Investment and the primary limited partners of its managed funds are the controlling shareholders of Chongqing Jindi Gas Group, whose industrial portfolio spans natural gas, agro-tourism, and technology, with business operations and industrial resources distributed across more than ten provinces and municipalities nationwide. The company’s team boasts extensive industrial background and social resources. It currently manages funds totaling RMB 350 million and has invested in over ten projects, including several related to synthetic biology.

Sanya Yazhou Bay Venture Capital Co., Ltd. undertakes the industrial investment functions of Sanya Yazhou Bay Science and Technology City Development and Construction Co., Ltd., focusing on investments in three major industries: Nanfan (seed breeding), deep-sea technology, and life sciences.