Xueji Biotech Secures RMB 100 Million Pre-A Financing to Advance Novel Cell Therapy Pipelines

Recently, HemaCell Therapeutics (Suzhou) Co., Ltd. (“HemaCell”) announced the completion of its RMB 100 million Pre-A financing round. The round was led by CMB International, with participation from Northern Light Venture Capital, CDH Investments, Sequoia China, Country Garden Ventures, Guanbang Capital, and Junzilan Capital. Existing investors Weidu Venture Capital and Yuanhe Holdings continued their support. According to reports, the proceeds will be used to accelerate the development of pipelines for hematopoietic stem cell- and iPSC-derived ex vivo regenerated platelets; advance the development of a platelet-based drug delivery platform; and establish a product system for clinical-grade iPSCs and their differentiation into various hematopoietic lineages. This financing will enable HemaCell to expedite pipeline development, recruit diverse talent, and construct GMP-compliant production facilities for late-stage small-scale and pilot-scale manufacturing.

HemaCell was established in June 2021 at the BioBAY (Suzhou Industrial Park Biopharmaceutical Industrial Park) and secured tens of millions of RMB in angel financing during its early stages. Founded by overseas-returning experts, HemaCell is a novel cell therapy company focused on the ex vivo regeneration of hematopoietic lineages, including blood cells and immune cells. The company possesses unique technologies for stem cell reprogramming, editing, and differentiation. Guided by its vision of “Coagulating Care for Hemostasis, Bringing Clarity and Health,” HemaCell is China’s first platelet regeneration company, dedicated to bringing about a “second transfusion revolution” in China that is independent of blood donations. Furthermore, leveraging its proprietary iPSC line establishment and gene targeting technologies, the company is rapidly building a platform that utilizes platelets as drug delivery vehicles. In addition, HemaCell has strategically positioned its technologies and patents for the directed differentiation of stem cells into various cell types of the hematopoietic and immune systems, laying a solid foundation for a diversified future product pipeline and offering broad market prospects.

Since its establishment, HemaCell has garnered widespread attention within the industry. Leveraging its team’s profound professional background and strong momentum for rapid growth, it has emerged as a highly promising and attractive newcomer in the field. Dr. Fangfang Zhu, the founder, spent 13 years conducting research in the laboratories of Dr. Irving Weissman, known as the “father of stem cells” at Stanford University, and Professor Hongkui Deng at Peking University. During this period, she accumulated the essential technological foundations required for HemaCell’s early development. Additionally, she has many years of experience in early-stage healthcare investment with US-dollar venture capital firms in the United States. Dr. Zhu is also a prominent leader in the Chinese-American community, having served as President and Chair of the Peking University Northern California Alumni Association, Secretary-General and Director of the Zhejiang Chamber of Commerce in the USA, and Director of the Northern California Chinese Alliance.According to incomplete statistics, the executive team at HemaCell has achieved remarkable success in stem cell research, particularly in the field of induced pluripotent stem cells (iPSCs). Team members received training at prestigious institutions such as Stanford University, Harvard University, Roswell Park Comprehensive Cancer Center, Peking University, and Wuhan University, studying under academic luminaries including Professor Irving Weissman, Professor Lee Rubin, and Professor Hongkui Deng. Collectively, the team has nearly 50 years of experience in stem cell research. They have published numerous high-impact academic papers as first or co-first authors, with a cumulative impact factor of 200 and over 3,000 citations. Their work includes a cover article in *Cell* and has been featured multiple times by leading international science and technology media outlets such as Nature Research Highlights (Nature Report), ScienceDaily, and EurekaAlert!, as well as in commentary articles in various academic journals. Furthermore, the team possesses extensive industry experience, having held roles in R&D, business development, production, and quality control at companies such as UCB, Merck, BD, Beijing BeiKe Biotechnology, Baiji Gene, and Bainnuo. This rich practical experience has provided them with profound insights into the stem cell industry.

Looking ahead, HemaCell will leverage Suzhou and Shanghai as its core hubs to radiate across the Yangtze River Delta city cluster, actively advancing the R&D and commercialization of its platelet product pipeline. Currently, the company’s R&D facilities span nearly 800 square meters; following this financing round, it plans to expand by approximately 2,000 square meters to meet demands in R&D, GMP manufacturing, business development (BD), and other areas. Meanwhile, HemaCell will proactively recruit like-minded and highly talented professionals to build a cohesive and action-oriented team, further enhancing internal departmental capabilities in pursuit of its shared vision and mission.

Dr. Zhu Fangfang, the company’s founder, stated:Drawing on years of scientific research and investment experience centered on stem cells, I consider HemaCell to be a highly unique and scarce player in the stem cell industry. Our strategic focus on platelets offers clear market positioning, substantial demand potential, and a relatively robust industrial pathway. Meanwhile, the high technological barriers we have established, combined with our team’s strong execution capabilities, are attracting significant attention from investors and industry professionals alike. Our flagship platelet project not only reflects our mission to address critical public health needs but also aligns with national defense policy priorities. We appreciate the recognition and support provided by the investors in this funding round, and we are confident that HemaCell will successfully achieve all key milestones, emerging as a global leader in the field of ex vivo platelet regeneration.

Mr. Rong Jing, Managing Director of CMB International Capital, stated:We are honored to serve as the lead investor in HemaCell’s Pre-A financing round. Platelets play a critical role in the human coagulation process; however, platelets currently used in clinical settings are primarily sourced from voluntary donations, resulting in persistent supply shortages. Leveraging its team’s robust scientific foundation in stem cell and platelet research, HemaCell has pioneered the production of platelets from hematopoietic stem cells and induced pluripotent stem cells (iPSCs). This breakthrough not only holds the promise of addressing an unmet market demand valued at billions of yuan but also enables applications in drug delivery, offering broad prospects for future utilization.

Aurora Venture Capital Partner Song Gaoguang stated:Platelets rely entirely on volunteer donations, resulting in an acute clinical shortage and a significant unmet need that is worsening with population aging. HemaCell boasts a world-class team and, leveraging years of technological expertise, produces platelets from stem cells in vitro, offering a promising solution to this critical clinical challenge. Northern Light Venture Capital is pleased to participate in HemaCell’s current financing round to benefit a broad patient population.

Dr. Liu Dan, Senior Partner at CDH Investments, stated:Stem cell-derived platelets represent an emerging global field with substantial value across clinical, pharmaceutical, and other societal domains. Leveraging its unique technological development pathway and the team’s high execution efficiency, HemaCell is poised to achieve breakthroughs in this area and emerge as a leading enterprise in the biotechnology sector.

Existing shareholder Weidu Venture Capital stated:Stem cell technology has demonstrated immense potential in the medical field. Leveraging a globally leading system for directed stem cell differentiation, HemaCell is dedicated to innovating the clinical application of next-generation stem cell technologies, with the promise of filling gaps in the global market. The team led by Dr. Zhu Fangfang has exhibited exceptional execution capabilities in product development and business expansion. We look forward to seeing the company reach new heights through the joint efforts of Dr. Zhu and her team, and we remain confident in its future prospects.

China Merchants International Capital Management (Shenzhen) Co., Ltd. (“CMI Capital”), a wholly-owned subsidiary of China Merchants Bank, has established a comprehensive business layout across private equity investment, investment fund management, mezzanine fund management, cross-border capital operations, and other innovative financial services. Committed to development, transformation, and innovation, CMI Capital strives to build a high-quality integrated investment platform and alternative asset management platform under the China Merchants Bank umbrella. Since its inception, CMI Capital has accurately grasped industry trends and capitalized on emerging opportunities, leading or participating in numerous prominent investment cases, thereby establishing itself as a leading private equity investment institution in China.

Northern Light Venture Capital, founded by Mr. Deng Feng in 2005, is a venture capital firm dedicated to “empowering world-class Chinese entrepreneurs and nurturing world-class Chinese enterprises.” It currently manages six U.S. dollar funds and four RMB funds, with assets under management exceeding RMB 30 billion. The firm has long focused on investing in early-stage, technology-driven innovative companies. To date, Northern Light has invested in more than 400 outstanding enterprises across the To-B, healthcare, and To-C consumer sectors, including Meituan, ThunderSoft, ChineseAll, BGI Genomics, BluePort Interactive, Spreadtrum Communications, Tencent Music, Hanting Hotel, GigaDevice, Burning Rock Biotech, CITIC Pharmaceutical, Anji Microelectronics, Hillstone Networks, Worldia, Zelt Pharma, iRay Technology, and Taimei Medical Technology.

CDH Investments, established in 2002, is one of the most influential alternative asset management firms in China. To date, its assets under management have exceeded RMB 170 billion. CDH has invested in more than 200 companies, over 70 of which are listed on domestic and international stock exchanges, fostering a cohort of industry-leading brands.

Sequoia China is committed to helping entrepreneurs build enduring, great companies by providing its portfolio companies with abundant global resources and valuable historical expertise. As “entrepreneurs behind entrepreneurs,” Sequoia China focuses on investment opportunities in three sectors: technology, consumer, and healthcare. Over the past 17 years, Sequoia China has invested in more than 900 enterprises characterized by distinct technological advantages, innovative business models, and high growth potential.

Country Garden Ventures is the direct equity investment arm of Country Garden Group. Guided by the strategy of “industrial empowerment and value co-creation,” it focuses on four key investment themes: technology, healthcare, consumer sectors, and industrial chains. Over the past three years, Country Garden Ventures has invested in more than 90 companies, among which 10 have successfully completed initial public offerings (IPOs), 26 are unicorns, and 13 have completed their next round of financing.

Guanbang Capital is a Hangzhou-based equity investment firm specializing in hard technology, with a primary focus on healthcare and advanced manufacturing. Since its establishment in 2020, Guanbang Capital has continuously identified and increased its investments in R&D projects involving protein-, nucleic acid-, and cell-based therapeutics, as well as advanced manufacturing initiatives in new materials, high-end equipment, and semiconductors.

Junzilan Capital, established in 2015, is an emerging professional investment firm with assets under management exceeding RMB 1.5 billion. The Boya Junzilan Fund, managed by the firm, serves as the fund for the Suzhou Peking University Entrepreneurs Chamber of Commerce, focusing on high-quality entrepreneurial projects founded by Peking University alumni. Its investment sectors include, but are not limited to, biopharmaceuticals, medical devices, new materials, and intelligent manufacturing.

Weidu Ventures, a young and dynamic venture capital firm, specializes in early-stage investments in the healthcare sector. Weidu Ventures focuses on cross-disciplinary applications of cutting-edge technologies—such as biotechnology and artificial intelligence—in healthcare, aiming to achieve more precise, efficient, and intelligent diagnostic and therapeutic solutions driven by technological innovation, as well as business model innovations propelled by new technologies. The Weidu team boasts extensive industry experience and medical resources, committed to helping entrepreneurs “bridge the gap from vision to realization.”

Established in 2001, Yuanhe Holdings manages funds totaling over RMB 100 billion, positioning it as one of China’s leading equity investment firms. The firm focuses on investment opportunities in emerging industries such as integrated circuits, biopharmaceuticals, artificial intelligence, nanotechnology applications, cloud computing, and big data. To date, it has directly invested in more than 1,100 projects, while its fund-of-funds platform has invested in 147 sub-funds.