Capital Favors Regenerative Aesthetic Materials: Siyuan Medical Secures Tens of Millions in New Funding and Files IPO Prospectus

VCBeat has learned that Nanjing Siyuan Medical Technology Co., Ltd. (hereinafter referred to as “Siyuan Medical”), a developer and manufacturer of regenerative aesthetic medicine materials and products, recently completed a financing round worth tens of millions of RMB. The round was led by existing investor BioTrack Capital, with participation from TigerYeah Capital. The proceeds will be used exclusively for the research and development, clinical trials, and regulatory registration of new products.

Siyuan Medical, founded in May 2019, is a technology-driven enterprise specializing in medical aesthetics products, with a core focus on biomedical polymer materials. The company is dedicated to the research and development, manufacturing, and sales of raw materials for medical aesthetics and medical devices. Currently, Siyuan Medical has established two core technological platforms: a translation platform for medical-grade polycarbonate-series biopolymer materials and a cross-linking technology platform for biomedical hydrogels. Focusing on new technologies and novel materials, Siyuan Medical has set up a joint R&D center with Beijing University of Chemical Technology and forged extensive collaborative partnerships with numerous prestigious universities and research institutions.

Regarding this round of financing, Feng Zhugang, Founder and CEO of Siyuan Medical, expressed gratitude to the investors for their recognition of Siyuan and the domestic medical aesthetics market. The booming consumer demand, along with the successful public listings and high market valuations of peer companies, have demonstrated the immense potential of China’s medical aesthetics market and further bolstered the confidence of industry practitioners and investment institutions in the sector. Meanwhile, Siyuan’s inherent commitment to source innovation, the founding team’s steadfast philosophy, and its existing professional achievements have once again earned the favor and support of capital markets. In the coming period, Siyuan will accelerate the R&D, clinical trials, and regulatory approval processes for new materials and products, dedicating itself to repaying the market with focused efforts and professional results.

If we were to tally the most popular products in the medical aesthetics industry over the past two years, “regenerative” products would account for at least half of the market.

Whether traditional contenders like poly-L-lactic acid (PLLA) and polycaprolactone (PCL), or emerging frontrunners such as recombinant collagen, have all witnessed rapid development in recent years. Particularly this year, the recombinant collagen sector has seen frequent activities, with a succession of investments, mergers and acquisitions, and IPO filings, propelling the hype around “regeneration” to an all-time high.

Meanwhile, “traditional players” have also accelerated their development. As previously reported by VCBeat, between April and June 2021—a span of just three months—three regenerative medical aesthetic products were launched in China. These products delivered strong financial performance, as reflected in their respective companies’ financial reports, and were hailed by these enterprises as “a key growth engine for their medical aesthetics businesses.”

Not only that, but since July 2021, multiple regenerative aesthetic medicine companies have demonstrated strong fundraising capabilities. Among them, Nanjing Siyuan Medical Technology Co., Ltd. completed two rounds of financing totaling tens of millions of RMB within approximately one year, underscoring its significant capital-raising prowess.

The founding team is the key reason why Siyuan has earned the trust of the capital market. More specifically, the founding team’s strong background in the serious medical industry has driven them to devote greater resources and effort to every stage of product design, development, and manufacturing. This commitment has impressed and resonated with investors, enabling Siyuan to secure capital trust at the founding team level.

Feng Zhugang’s original motivation for choosing to start a business in the medical aesthetics sector also allowed VCBeat to sense this founder’s deep commitment to the healthcare industry.

“Before taking the leap into entrepreneurship, I spent considerable time exploring and reflecting. My primary reason for choosing the medical aesthetics sector was my reluctance to leave the pharmaceutical industry; I was unwilling to abandon the groundwork laid and the experience gained over the years, nor could I disregard the responsibilities I had shouldered for so long. Moreover, medical aesthetic products indeed undergo a comprehensive and rigorous pharmaceutical lifecycle from R&D to market launch. Additionally, medical aesthetics carries strong consumer attributes, free from the heavy themes of birth, aging, sickness, and death, which makes the field more vibrant and dynamic. This calls for higher standards of innovation. In this sense, I am simply approaching familiar and beloved work from a new perspective,” said Feng Zhugang.

Zhang Jianjun, another co-founder of the company, serves as the head of the R&D Center at Nanjing Siyuan Medical Technology Co., Ltd. He completed his postdoctoral research at the University of California, Los Angeles (UCLA), specializing in the application of biomedical materials in tissue engineering and controlled drug delivery systems. He has participated in multiple national key projects, including the National 863 Program, the National 973 Program, and projects funded by the National Natural Science Foundation of China, and has published his research findings several times in prestigious international academic journals.

As the only medical aesthetics “veteran” among the three company founders, Sun Lili brings seventeen years of sales experience and a unique understanding of the medical aesthetics market. “What Siyuan aims to achieve is the perfect integration of the fast-paced nature of medical aesthetics with the deliberate, cautious mindset of serious healthcare; this philosophy will be ingrained in Siyuan’s DNA…” It was this insight that allowed her to complete the final crucial piece of Siyuan’s strategic puzzle at the company’s inception.

A company’s ability to achieve rapid and sustained growth hinges not only on the leadership’s industry insight and strategic direction, but also on its product strength and commitment to regulatory compliance.

VCBeat has learned that last year, Siyuan welcomed its first partner—Dong Xiang, who brings nearly 20 years of experience in medical regulatory affairs. “The regulatory center established by Dong Xiang has introduced to Siyuan forward-looking compliance strategies and advanced concepts for R&D focused on product application. This will help Siyuan achieve more stable, smoother, and sustained growth in the future,” commented Feng Zhugang.

Siyuan has always regarded R&D as the lifeblood of the enterprise. To quote Feng Zhugang, “Source innovation is deeply embedded in Siyuan’s DNA.”

From its inception, Siyuan established a clear R&D philosophy: “Develop suitable materials, design appropriate dosage forms, apply them at the right anatomical sites, and achieve optimal therapeutic effects.” Building on this foundation, the company has gradually developed two major technology platforms: a translation platform for medical-grade polycarbonate-series polymer materials and a cross-linking technology platform for biomedical hydrogels. “The establishment of this R&D philosophy and the corresponding platforms has ensured Siyuan’s ability to consistently deliver new materials and products at a rapid pace.”

Leveraging the aforementioned two major technology platforms, Nanjing Siyuan Medical Technology Co., Ltd. (Siyuan) has accumulated substantial expertise in raw materials and preparation technologies for regenerative aesthetics. The company has successfully developed multiple regenerative aesthetic materials, achieving innovations ranging from material synthesis to microsphere intermediate preparation. Its manufacturing processes have reached maturity, ensuring stable production capacity.

Taking the “youthful-face injection” as an example, the PLLA microspheres developed by Siyuan feature excellent suspendability and strong stability, a higher number of microspheres per unit mass, superior biocompatibility of excipients, a low incidence of swelling, and an inconspicuous regression phase.

It is reported that the new-generation collagen-stimulating injection will be Siyuan’s first product to enter the market and is currently in the clinical trial phase. In addition, several medical aesthetic products developed by Siyuan based on regenerative materials are undergoing systematic refinement and testing. It is expected that 4–6 regenerative medical aesthetic products will enter clinical trials in 2023.

At the end of the interview, Feng Zhugang revealed to VCBeat that in the coming years, as Siyuan’s products are officially launched, both consumers and the industry will clearly perceive the changes Siyuan brings to the market. This reflects Siyuan’s competitive advantage spanning from material research and development to product application design.

Mr. He Fuchang, Partner at Jinding CapitalStatement: JINDING CAPITAL continues to closely monitor the medical aesthetics sector. Regenerative medical aesthetic products offer high safety profiles and superior clinical efficacy. As the market is still in its early stages of development, these products can generate new, distinct demand with higher per-treatment pricing without cannibalizing or displacing the market share of existing procedures. Nanjing Siyuan Medical Technology Co., Ltd.’s multi-pipeline proprietary technology platform, the team’s profound understanding of the medical aesthetics industry, and their extensive market experience form the foundation of JINDING CAPITAL’s confidence. Currently, Siyuan Medical’s R&D pipeline for medical aesthetic products is advancing rapidly, with a highly forward-looking strategic layout. Targeting various indications for future facial rejuvenation treatments and the specific skin layers requiring intervention for each indication, Siyuan Medical has selected appropriate bioactive materials, conducted independent R&D and design, and optimized formulation processes. This approach addresses current market challenges related to the safety, clinical applicability, and suboptimal efficacy of similar products. Furthermore, the company has strategically positioned itself for the next 5–10 years by laying the groundwork for innovative regenerative medical aesthetic products for facial rejuvenation. We are confident that under the leadership of Mr. Feng Zhugang, Siyuan Medical will achieve rapid, high-quality growth and emerge as a global leader in novel injectable filler materials and innovative medical devices.

Mr. Liu Kai, Managing Director of BioTrack CapitalStatement: Innovative medical devices and regenerative medicine have long been key areas of focus for BioTrack Capital. Nanjing Siyuan Medical Technology Co., Ltd. has accumulated substantial expertise and conducted in-depth R&D in the field of next-generation regenerative medicine materials. We highly recognize the company’s strategic R&D deployment of novel injectable filler materials, which is grounded in thorough market research and comprehensive studies on biodegradable materials. We believe that the company’s new generation of filler products will inject fresh vitality into the medical aesthetics market in the future.

Dr. Ji Tianrong, Founding Partner of TigerYeah CapitalTigerYeah Capital stated: "Early-stage innovative medical devices have always been a key investment focus for us. China's medical aesthetics market is large and growing rapidly, with continuous breakthroughs in materials and equipment offering significant investment value. Nanjing Siyuan Medical Technology Co., Ltd. has built strong historical foundations and talent reserves in R&D innovation, commercial operations, and regulatory compliance. This aligns with the current trend in the medical aesthetics industry, which emphasizes not only sales but also product quality and compliance. We believe that under the leadership of its founders, and leveraging its platform-based technological advantages, Siyuan Medical will soon continue to deliver groundbreaking, high-quality products to consumers."

Jinding Capital is an industrial investment firm that has long been deeply engaged in the consumer, healthcare, and technology sectors. With a team of over 100 professional investment and operational experts, the firm maintains offices in Beijing, Shanghai, Hangzhou, and Guangzhou, and has established funds with a cumulative scale of nearly RMB 10 billion. Jinding Capital’s proprietary CVC (Corporate Venture Capital) strategic investment model for listed companies has provided capital strategy and M&A advisory services to more than 20 publicly traded companies.

BioTrack Capital, established in 2017, is a professional investment firm dedicated to investing in and incubating outstanding healthcare startups in the Chinese market. Currently, BioTrack Capital manages two RMB funds and two USD funds, with total assets under management exceeding RMB 7 billion. More than just an investor, BioTrack Capital serves as a long-term partner to entrepreneurs. Since its inception, the firm has remained committed to an entrepreneur-centric approach, providing sustained support and active empowerment to exceptional founders in the healthcare sector, fostering an industry ecosystem, and cultivating the next generation of leading enterprises in China’s healthcare industry.

TigerYeah Capital, established in 2014, is an independent venture capital firm under Tigermed. Focusing on equity investments in early-stage and growth-stage healthcare companies, its management team boasts profound industry expertise, extensive sector resources, and rich investment experience. To date, the firm has invested RMB 2 billion in nearly 100 projects, with a portfolio spanning medical devices, biopharmaceuticals, CROs, and health supplements. By empowering its portfolio companies, TigerYeah Capital creates value for the development of the healthcare industry in China and globally, contributing to public health.