Chuangjian Medical Secures Nearly RMB 200 Million Series A Funding to Advance Innovation in Recombinant Collagen Biomaterials
In August 2022, Jiangsu Trautec Medical Technology Co., Ltd. (“Trautec”) completed its first round of equity financing, raising nearly RMB 200 million. The round was led by Shiseido Ziyue Fund, with participation from Huafang Capital, CDH Investments, and Huali Pharmaceutical. The proceeds will support Trautec’s continued investment in technological innovation and product R&D, bringing more advanced core technologies and products to the recombinant collagen biomaterials market.
TRAUTEC, established in 2015, is a technology-driven enterprise centered on the scientific principles and key technologies of synthetic biology, specializing in the research and development, manufacturing, and sales of novel biomaterials and innovative protein- and nucleic acid-based therapeutics. Guided by its vision to “build an intelligent manufacturing platform for the synthetic biology industry,” the company fulfills its mission of “bringing science closer to life and creating a healthier future,” with long-term strategic investments in new materials for life and health, particularly in the fields of injury repair and tissue regeneration.
TRAUTEC places significant emphasis on R&D investment and currently operates R&D centers and manufacturing facilities in Changzhou (Wujin and Jintan districts), Jiangsu Province; Xining, Qinghai Province; and Changsha, Hunan Province. Its core product, recombinant collagen-based biomedical materials, aligns with the national strategic direction for tackling key scientific and technological frontiers under the 14th Five-Year Plan, specifically in the fields of synthetic biology and regenerative medicine. In 2021, the product’s market share ranked among the top in China. Furthermore, TRAUTEC has jointly established recombinant collagen-related laboratories and research institutes with The Chinese University of Hong Kong, Sichuan University, the Pingshan Center of Shenzhen Bay Laboratory, and Changzhou University. It also collaborates with several leading Grade A tertiary hospitals, including Shanghai Changhai Hospital and Shanghai Ninth People’s Hospital, to conduct clinical studies, thereby building a highland for innovation in the synthetic biomaterials industry.
TRAUTEC, grounded in independent research and development, has achieved two major technological breakthroughs: “construction of a yeast-based stable genetic expression system for recombinant type III collagen” and “development of 30-ton-scale stable fermentation and purification technology.” It has completed large-scale, standardized production of recombinant type I, II, III, and XVII collagens, filling the global capacity gap for “ton-level” production of recombinant collagen materials that had persisted for over three decades. The “research, development, and industrial translation of recombinant type XVII collagen” also realized a groundbreaking “from 0 to 1” advancement in the R&D and industrialization of this special type of collagen material worldwide, providing new directions for innovative medical devices based on regenerative materials. As one of the drafting organizations for the Chinese industry standard “YY/T 1849 Recombinant Collagen” (2022), TRAUTEC has been granted or filed more than 40 patents and obtained approval for over 30 Class II medical devices containing recombinant collagen. In 2022, four of TRAUTEC’s Class III medical device projects entered clinical trials and are poised to proceed to the product registration stage.
Regarding the collaboration with Shiseido China, Mr. Qian Song, CEO of TRAUTEC, stated: “Shiseido is an international beauty group with a 150-year history, deeply trusted by the market for its keen industry insights, robust R&D capabilities, and excellent management expertise. The lead investment by Shiseido’s Yue Fund in this round serves as a strong endorsement of TRAUTEC, accelerating our pace in R&D innovation and international market expansion. With a forward-looking vision and proactive strategic layout, we aim to partner with Shiseido to explore broader business areas and leverage its management experience and global network to step onto a larger international stage, securing a strategic advantage for China’s recombinant collagen industry to lead globally.”
This round of financing represents a strong endorsement by the capital market of TRAUTEC’s achievements in recent years and its future prospects, and is bound to inject new momentum into the company’s rapid development. Currently, the blue ocean of recombinant collagen is vast and dynamic, brimming with immense opportunities and potential. Leveraging this round of financing, TRAUTEC will continue to focus on innovation in biomaterials, integrate resources from all parties, and strategically position itself at the forefront of the industry.
Founded in 1872, Shiseido operates in more than 120 countries and regions worldwide. In 1981, Shiseido became the first international cosmetics group to enter the Chinese market. With over four decades of presence in China, Shiseido China has evolved into a comprehensive beauty company integrating research and development, manufacturing, sales, and services. The Ziyue Fund is the first dedicated investment fund established by an international beauty group in China, set up by Shiseido in partnership with Boyu Capital, a leading domestic alternative asset management firm. The fund focuses primarily on investment opportunities in emerging brands within the cutting-edge beauty and health sectors, as well as in related upstream and downstream technology companies.
By investing in TRAUTEC, Shiseido China aims to strategically position itself in the emerging field of novel biological materials for beauty products. The company plans to leverage the combined strengths of both parties in product R&D, raw material supply, and channel resources to explore collaborative opportunities in functional skincare. Kentaro Fujiwara, CEO of Shiseido China, stated, “As the first international beauty group to enter China, Shiseido has been rooted in the Chinese market for over four decades. We have always firmly believed in the immense potential of this market and have never wavered in our confidence to invest in China. The establishment of the Shiseido Yue Fund is a strong testament to our long-term commitment to China. As a new starting point for Shiseido’s integration into local innovation, we hope to join forces with TRAUTEC, leveraging our brand management expertise and R&D capabilities to focus on the high-potential functional skincare sector, thereby further promoting the high-quality development of China’s beauty industry.”
Huafang Capital, established in 2017, is a fund management institution under Hualy Group that focuses on early-stage investments in the biopharmaceutical and advanced manufacturing sectors. It currently oversees five venture capital funds, with total assets under management exceeding RMB 1 billion. Leveraging the Group’s extensive experience in biopharmaceuticals and advanced manufacturing, as well as the rich industrial resources of its listed companies, Huafang Capital has completed investments in numerous leading enterprises in niche segments. For instance, Zhongji United has been listed on the Main Board, while Westlake Biologics, WeLiZhiBo, Ruijian Pharmaceutical, and Monro Bio have achieved rapid growth, generating synergistic effects.
Lu Chi, Partner at Huafang Capital, stated, “Huafang Capital has consistently focused on projects in interdisciplinary fields. We are delighted to partner with TRAUTEC. Qian Song, CEO of TRAUTEC Medical, possesses profound insights into biosynthesis technology, the serious medical sector, and the medical aesthetics market. As production costs decline, TRAUTEC Medical’s mass-produced recombinant collagen biomaterials—Types I, II, III, and XVII—will have extensive application scenarios in downstream sectors, including serious medical care, medical aesthetics, and food. We firmly believe that, leveraging its biosynthesis technology platform and the team’s deep understanding of customer needs, TRAUTEC will deliver more valuable and competitive products in the future.”
Dinghui Baifu is an investment platform under CDH Investments that focuses on technology investments and builds specialized, high-quality funds. It conducts investments based on strategies centered on emerging trends, regional expansion, and counter-cyclical opportunities, and has systematically laid out its portfolio in sectors such as semiconductors, high-end equipment, biopharmaceuticals, global expansion of Chinese tech companies, and carbon neutrality. To date, it has invested in more than 130 projects, with assets under management exceeding RMB 70 billion.
Ying Wei, Managing Partner at CDH Baifu, stated: “We remain bullish on upstream biotech material companies that possess both technological and manufacturing capabilities. Given the high technical barriers associated with recombinant collagen core technologies, Jiangsu Trautec Medical represents a scarce investment opportunity, with significant growth potential in functional skincare and biomaterials.”
Huali Medicine is the investment platform of Holley Group in the pharmaceutical and broader healthcare sector. Founded in 1970, Holley Group has long focused on investing in and cultivating businesses in medical and health services, traditional Chinese medicine (TCM) and proprietary Chinese medicines, prescription drugs, precision medical services, clean energy and the Internet of Things (IoT), new materials, as well as innovation and entrepreneurship services. Currently, Holley Group controls three A-share listed companies: Kunming Pharmaceutical Group, Jianmin Pharmaceutical Group, and Huazheng New Material. It operates three postdoctoral workstations, four national-level technology centers, six industrial research institutes, eight provincial-level enterprise technology centers, and twelve high-tech enterprises, supported by a scientific research team comprising thousands of professionals.
This collaboration with TRAUTEC represents a significant move in Huali Group’s strategic layout within the big health industry. Wang Siyang, President of Huali Group, stated, “The big health sector is a key focus of Huali Group’s long-term strategy, and we continue to closely monitor niche areas such as medical aesthetics and functional skincare. TRAUTEC has achieved major breakthroughs in recombinant collagen technology through independent R&D, while continuously enriching its product portfolio, which spans food, protein-based pharmaceuticals, consumer healthcare, and serious medical applications, offering broad prospects for future growth. We will deeply engage in TRAUTEC’s global expansion and upstream-downstream collaborations, helping it become a leading enterprise in the global recombinant collagen industry.”