Shenzhou Biosciences Secures Nearly RMB 100 Million in Pre-A+ Financing Led by Sequoia China, with Co-Investment from Lilly Asia Ventures and Qiming Venture Partners

XsellSmart’s Long-Term Vision and Mission: To Benefit Millions of Suffering Patient Families with Unparalleled “Shi”-Grade Stem Cell Innovative Drugs, Bringing “Ze” (Blessings) to All

Life First

VCBeat has learned that today, a next-generation innovative enterprise in stem cell therapyXsellSmart, officially announced the completion of a financing round led byLed by Sequoia China, with co-investment from Lilly Asia Ventures and Qiming Venture Partnersof nearly RMB 100 million in its Pre-A+ financing round. Since then, XsellSmart has successively completed rounds led byFrees Fund (Lead Investor in the Angel Round), Lilly Asia Ventures and Qiming Venture Partners (co-lead investors in the Pre-A round), and Sequoia China (lead investor in the Pre-A+ round),Co-invested by Origin Ventures, TEDA Sci-Tech Investment, Daoyuan Capital, Jiacheng Capital, and Lingjun Venture CapitalThe total amount of the angel round, Pre-A round, and additional financing exceeded RMB 100 million. The proceeds from this additional financing will be primarily used to enhance key technology platforms, accelerate the development of multiple R&D pipelines, and construct a production facility for clinical-grade cell therapy products.

Dr. Li Xiang, a core founder of XsellSmart, was born into a family affected by Parkinson’s disease. Upon his first exposure to stem cell therapy, he devoted himself entirely to research in the field of stem cells.Has successively studied under three distinguished scientists with international influence in the field of stem cells: Current Dean of the School of Life Sciences and Technology, Tongji UniversityProf. Gao Shaorong, Director of the Stem Cell Research Center at Peking UniversityProf. Hongkui Deng, Professor at the University of Wisconsin–Madison and Director of the Neuroscience Research Center at Duke-NUS Medical SchoolProf. Su-chun Zhang, focusing respectively on the regulation of stem cell fate, cellular reprogramming to generate induced pluripotent stem (iPS) cells and functional cells, and the differentiation of stem cells into distinct neuronal subtypes.

Subsequently, Dr. Li Xiang obtainedThe Parkinson's FoundationSecured funding and led research on the induced differentiation of human pluripotent stem cells into dopaminergic subtype neural precursor cells and their cell therapy applications in animal models of Parkinson’s disease; subsequently joined the early-stageSana Biotechnology, Inc. (U.S.), served as Senior Scientist and Senior Research Fellow (with two notable achievements: securing a $700 million Series A financing round that broke the funding record in the cell therapy sector, and achieving the largest IPO fundraising record for a preclinical biotechnology company); upon returning to China, assumed the roles of Head of Stem Cell Product R&D and Chief Technology Officer at a domestically listed pharmaceutical company.

After accumulating more than a decade of experience at renowned stem cell research institutions and leading international cell therapy companies, both in China and abroad, Dr. Li Xiang has leveraged this extensive expertise to propose“With unparalleled, nation-leading innovative stem cell therapies, we bring blessings to millions of suffering patient families.”XsellSmart's Long-Term Vision and"Patients First, Scalpel Second, Shareholders Third"XsellSmart Values,In 2021, he spearheaded the founding of XsellSmart and serves as its CEO and CSO., having joined forces with Dr. Xiao, Dr. Yan, and Mr. Qiu, and bringing together a distinguished group of visionaries and experts from the scientific and industrial sectors, including Dr. Chen, Dr. Huang, Dr. Zhu, and Mr. Yao. The company currently employs nearly 60 full-time staff, including 10 individuals with PhD or postdoctoral qualifications, and over 65% of its employees hold master’s degrees or higher.

Under the leadership of Dr. Li Xiang, XsellSmart has independently designed andCompleted construction of a 1,600 m² R&D center and currently constructing a 3,500 m² production and commercialization base, the XsellSmart team has completediPS Cell Line Reprogramming, iPSC Gene Editing Platform, and Induced Differentiation of iPSCs into Various Neuronal Subtypesconstruction of key technology platforms, completedParkinson’s disease animal models for the safety and efficacy evaluation of cell-based therapies, with related patents filed.

Dr. Li Xiang was selected as a Science and Technology Leading Talent in Suzhou Industrial Park in 2021 and as a Shanghai Pujiang Talent, and was recognized as one of the “30 Outstanding Young Innovators in China” at the Global Youth Innovation Conference (evaluated by the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and other authorities). XsellSmart has been honored withIncluding the National Disruptive Technology Certification and outstanding and winning projects from the National Disruptive Technology Innovation Competition (selected by the Ministry of Science and Technology of China)including numerous honors such as the "2021 Top 50 Innovative Biopharmaceutical Companies in China" (selected by the Shanghai Association for Science and Technology, among others) and the "Golden Award" for Most Growth-Oriented Innovative Company of the Year (selected by the Ministry of Industry and Information Technology, among others), and was elected as a standing vice-chairman unit of the Jiangsu Biotechnology Association.

Dr. Li Xiang, Founder, CEO & CSO of XsellSmart: XsellSmart extends its gratitude to Sequoia China, long recognized as one of China’s top investment institutions, and to Qiming Venture Partners and Lilly Asia Ventures, benchmark professional investors in the biopharmaceutical sector, for jointly leading XsellSmart’s Pre-A and additional financing rounds. We thank these three premier firms for their consistent selection and support of XsellSmart, and for their recognition of our core competitiveness, long-term growth potential, and core values.

2021 marked the inaugural year of commercialization for cell therapy drugs in China, a period coinciding with a major historical transformation in the Chinese pharmaceutical industry from imitation to innovation. New drug innovation is guided by clinical value, integrating all key stages to ultimately deliver tangible products.In particular, the emerging field of innovative drug R&D, represented by iPS cell-based therapeutics, still faces significant challenges in China regarding talent, technology, policy, and supply chain.

XsellSmart has a clear long-term corporate vision and values. Over the past decade, it has remained committed to deepening its expertise across all key segments, witnessing the industry’s gradual development and its transition from a niche field to a hotspot. As domestic iPSC cell therapy remains in its early stages, it is essential to maintain long-term optimism while adhering to a cautious, evidence-based approach.XsellSmart is a practitioner and co-driver of stem cell therapy and industrialization in China, as well as a humble learner. With solid accumulation, long-term vision, and sustainable execution capabilities, XsellSmart stands firm in this major historical transformation.With the steadfast support of our cornerstone investors, I will lead the fully dedicated team at XsellSmart to stay true to our vision and pursue steady, long-term growth. We remain deeply committed to technological innovation and product quality, striving to deliver breakthrough contributions that will benefit millions of patient families enduring suffering.

XsellSmart is in the early stages of rapid development. We warmly welcome ambitious and talented individuals who share our vision to join XsellSmart at this pivotal time, dedicating themselves fully to this worthy, challenging, yet deeply rewarding endeavor!

Gu Cuiping, Managing Director at Sequoia China:As induced pluripotent stem cell (iPSC) technology continues to mature, it holds promise for providing new therapeutic approaches and significant clinical value for degenerative diseases. The XsellSmart team, led by Dr. Li Xiang, boasts many years of relevant research and development experience. We look forward to the XsellSmart team achieving further breakthroughs, accelerating the clinical development of its products, and ultimately benefiting a broad patient population!

Sequoia China is committed to helping entrepreneurs build enduring, great companies by providing its portfolio companies with abundant global resources and valuable historical experience. As “entrepreneurs behind entrepreneurs,” Sequoia China focuses on investment opportunities in three sectors: TMT, healthcare, and consumer goods/services. Over the past 16 years, Sequoia China has invested in more than 900 enterprises characterized by distinct technological advantages, innovative business models, and high growth potential.

Qiming Venture Partners was established in 2006 and has successively set up offices in Shanghai, Beijing, Suzhou, Hong Kong, Seattle, Boston, and the San Francisco Bay Area. Currently, Qiming Venture Partners manages nine U.S. dollar funds and six RMB funds, with total assets under management reaching $5.9 billion. Since its inception, the firm has focused on investing in outstanding early-stage and growth-stage companies in sectors such as TMT and Healthcare.

As of now, Qiming Venture Partners has invested in more than 380 high-growth innovative enterprises, among which over 130 have achieved exits through listings on exchanges such as the New York Stock Exchange (NYSE), NASDAQ, the Hong Kong Stock Exchange, the Taipei Exchange, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange, as well as through mergers and acquisitions. More than 40 of these portfolio companies have become industry-recognized unicorns and super unicorns.

Lilly Asia Ventures (LAV) is a premier venture capital fund dedicated to investing in the life sciences and healthcare sectors. Headquartered in Shanghai, China, with offices in Hong Kong, China, and Silicon Valley, USA, our long-term vision is to build great companies that overcome diseases and improve human health through breakthrough products, and to serve as a trusted partner for outstanding entrepreneurs seeking smart capital.