Saiqiao Bio Secures Nearly RMB 100 Million in Series A Funding to Accelerate Domestic Production of Core Upstream Equipment for Cell and Gene Therapy

VCBeat (WeChat ID: vcbeat) has learned that Shenzhen Saiqiao Bio-Innovation Technology Co., Ltd. (“Saiqiao Bio”) announced today that it has recently completed a tens-of-millions RMB Series A financing round, led by Matrix Partners China and participated by Delian Capital. Combined with its angel round funded by Shuimu Ventures, and its tens-of-millions RMB Pre-A round led by Tengye Venture Capital and participated by TusStar and Changfa Zhan, Saiqiao Bio has successfully closed three financing rounds totaling nearly RMB 100 million within the past 15 months. OptimasCapital served as the exclusive financial advisor.

Saiqiao Biologics was established in February 2020, co-founded by several outstanding Ph.D. graduates from the Department of Precision Instruments at Tsinghua University and Professor Zhang Youming, an Academician of the German National Academy of Sciences and Engineering (acatech) and the Academia Europaea. Saiqiao Biologics focuses on source technology innovation and localization of key upstream manufacturing technologies and complete sets of core equipment for the cell and gene therapy (CGT) industry. It is committed to breaking import monopolies and providing industry customers with a fully domestically developed, autonomous, and controllable digital process equipment platform for CGT.

2017 marked the inaugural year of industrialization for cellular immunotherapy. To date, seven CAR-T products have been successfully approved and launched globally, drawing worldwide attention to cell and gene therapy (CGT) as a disruptive therapeutic approach. China has emerged as fertile ground for the global development of the CGT industry, with R&D enterprises proliferating rapidly; their number has exceeded 500, and the volume of clinical pipelines has surpassed that of the United States for the first time. Meanwhile, there is an urgent and substantial unmet market demand for the foundational manufacturing capabilities critical to the industrialization of new drugs.

Currently, the underlying manufacturing equipment for cell and gene therapy (CGT) has long been monopolized by imported brands, leading to issues such as low supply-demand matching, high prices, long lead times, and insufficient service depth. Consequently, domestic enterprises have an increasingly strong demand for Chinese-made CGT preparation tools, consumables, and services. From both the macro perspective of national biosafety and the micro perspective of CGT industry development trends, it is evident that opportunities for Chinese-made upstream automated R&D/production equipment and consumables in the CGT sector are accelerating.

Saiqiao Biotechnology is committed to achieving closed, automated, digital, and flexible equipment for the industrialization of CGT, accelerating the promotion of domestic substitution. It has built a platform for equipment and consumables capabilities and completed the development of a full set of process modules, including equipment for closed automated blood sample separation, magnetic bead activation and sorting, electroporation, cell expansion, washing and concentration, and formulation filling, as well as supporting series of GMP single-use closed consumables.

Saiqiao Bio's ProductsConfigurable Flexibility, mainly reflected in the followingFour Levels：

First, software-level flexibility is achieved through graphical programming to reconfigure the functions of underlying hardware modules and allocate hardware resources on the software platform;

Second, flexibility at the consumables level enables rapid customization of innovative consumables based on customer needs;

Third, flexibility at the modular combination level, enabling rapid and flexible assembly of modular equipment based on customer requirements to customize solutions best suited to their process workflows.

Fourth, equipment-level flexibility enables the rapid development of equipment models for key performance validation based on customer requirements, thereby accelerating customer process development. Commercial products validated across the entire system can be delivered within just six months.

Dr. Shang Yuanfang, Founder and CEO of Saiqiao Biotechnology, stated“Relying on modular products and flexible configurations, Saiqiao Biotechnology can minimize contamination risks, optimize space utilization, enable product customization, reduce training requirements for GMP compliance, and lower labor costs.”

Hardware is the foundation, and data is the core.Core digital microfluidics technology enables precise control over the intricate processes of cell manufacturing; leading biosensing technology visualizes complex workflows; efficient artificial intelligence algorithms keenly detect subtle variations caused by different parameters, facilitating rapid optimization and iteration of processes; modular, flexible configurations allow for personalized customization tailored to customer needs.

Saiqiao Biotech, rooted in China and serving the global market, has pioneered a one-stop foundational equipment technology platform, offering comprehensive solutions ranging from hardware devices and process services to data services. It has established a 5,000 m² facility in Shenzhen.²GMP production lines and high-end R&D laboratories for the commercialization of related products.

In just over a year and a half, the company has achieved rapid growth, driven by the founding team’s years of deep and solid accumulation of foundational technologies.Dr. Guo Xiaoliang, Co-founder and CTO of Saiqiao BiotechnologyHe was a key participant in the National Major Special Project on Biological Instruments and has accumulated over 10 years of foundational expertise in automated cell processing and analysis technologies as well as precision biological instrumentation.Founder & CEO: Shang YuanfangHe was among the first PhDs in microfluidics laboratories in China and, after graduation, accumulated extensive experience in the rapid translation of new technologies into engineered products and quality management within the field of high-end military equipment.

Saiqiao Biotech is one of the few equipment technology companies in China that possesses deep foundational innovation capabilities, can rapidly develop equipment models tailored to customer needs, and offers comprehensive process technology solutions. Dr. Shang aims to leverage Saiqiao Biotech’s strengths to accelerate the commercialization of R&D achievements for CGT enterprises, thereby driving a profound transformation in the research and production paradigms of the CGT industry.

Currently, Saiqiao Ark has completed the R&D and reliability testing of key modular products for CGT and one-stop preparation centers, and established a production base in Shenzhen that complies with ISO and cGMP standards. By forming strategic partnerships with multiple leading clients, Saiqiao Ark has achieved comprehensive coverage of various downstream therapies in the CGT field (such as CAR-T, CAR-NK, TILs, TCR-T, and gene therapy), earning strong customer recognition.

Notably, in January 2021, Saiqiao Ark (Shenzhen) Biotechnology Co., Ltd. established a strategic partnership with Beijing Yongtai Biotherapeutics, a leading cell therapy company. The fully enclosed automated cell production system, Gentle Harv 2000, developed through this collaboration, is poised to undergo large-scale commercial certification and is expected to become the first domestically produced equipment of its kind applied to the commercial manufacturing of cell-based pharmaceuticals.This marks a significant milestone in China’s upstream equipment sector for cell and gene therapy (CGT), breaking foreign monopolies and earning genuine recognition from customers.

In the future, Saiqiao Ark will collaborate with leading domestic reagent suppliers and integrate downstream cryogenic storage equipment to accelerate the realization of a closed-loop industrial ecosystem. Committed to becoming the leading Chinese brand of core foundational equipment in the CGT field, it aims to significantly reduce the delivery costs of CGT drugs, making the most advanced therapies accessible and affordable for the majority of patients.

Dr. Shang Yuanfang stated“CGT, as the most cutting-edge precision medicine and biopharmaceutical technology globally, holds promise as the ultimate means for humanity to conquer cancer. It offers the dawn of a fundamental, one-time cure for relapsed/refractory diseases, such as those involving tissue and organ damage, thereby creating opportunities for patients to achieve high-quality survival.”

“2021 marked the inaugural year of immune cell therapy in China. The entire industry is currently in a phase of explosive growth, with the number of clinical pipelines in China surpassing that of the United States for the first time. New drugs are gradually transitioning from R&D to commercialization. Saiqiao is committed to driving innovation in foundational manufacturing capabilities within the industry, helping clients achieve process flexibility and production safety while reducing costs. This fundamentally enhances drug delivery efficiency and quality, lowers delivery costs, and ensures that the latest scientific and technological advancements benefit a broader patient population.”

Sun Linghao, Investment Director at Matrix Partners China, stated“New technological approaches in cell and gene therapy (CGT) are emerging continuously. We believe that it is particularly important to continuously reduce CMC costs and achieve automated, traceable manufacturing processes. Saiqiao Ark has focused on foundational innovation in key CGT manufacturing technologies and integrated core equipment, becoming the first supplier in China capable of providing commercial-scale CGT production equipment within a short period. This demonstrates the team’s exceptional technical expertise and execution capability. We look forward to Matrix Partners China accompanying the company in its sustained growth.”

Delian Capital and Xiao Peng stated“The closed, automated, and digital development of R&D and production equipment for cell and gene therapy products is an inevitable trend. The core team of Saiqiao Biotechnology hails from the Department of Precision Instruments at Tsinghua University and leading domestic cell therapy companies, possessing strong capabilities in equipment development and product feedback-driven iteration. Within just over a year since its establishment, the company has successfully developed multiple pieces of equipment. We look forward to Saiqiao Biotechnology providing more reliable and high-quality products to domestic cell and gene therapy companies in terms of production equipment, and becoming a global leading provider of process solutions for cell and gene therapy manufacturing.”

Gao Wei, Partner at Tengye Venture Capital, stated“Cell and gene therapies have achieved their first commercial breakthroughs, with further technological advances, new therapeutic drugs, and benefits for more patients seemingly within reach. Yet looking at the reality on the ground, manufacturing a single cell therapy product remains highly challenging and costly. Saiqiao aims to fundamentally standardize, automate, fully close, ensure high quality, and reduce the cost of cell therapy production. By building this ‘bridge,’ we hope to eliminate concerns about current manufacturing hurdles and focus wholeheartedly on exploring the vast potential of cell therapy.”

Yan Yi, an investor at Shuimu, stated“CGT, oriented toward diseases that are difficult to treat clinically, is leading the wave of next-generation therapeutic technologies, with the entire CGT industry chain experiencing sustained rapid growth. Currently, consistency, controllability, and final production costs of CGT products have become significant pain points in the industry. Saiqiao Biotechnology has mastered independent core underlying component technologies and innovative interdisciplinary integration technologies, effectively addressing upstream CGT production pain points through a perfect digitalized, intelligent, and fully closed production solution, earning recognition from leading CGT clients. The core team, composed of multiple Tsinghua University PhDs, possesses profound expertise in underlying and interdisciplinary technologies, demonstrating strong execution and product development capabilities. Shuimu Venture Capital has firmly believed in the company since the angel round and has continued to increase its investment, looking forward to the company becoming a leader in upstream CGT production.”

Matrix Partners China, established in 2008, is a leading venture capital firm in the industry with a long-term focus on early-stage and early-growth investments. It specializes in investments across sectors such as intelligent manufacturing, hard technology, aerospace, mass consumer markets, enterprise services & B2B & transaction platforms, and healthcare. To date, Matrix Partners China has invested in over 700 companies. Notable portfolio companies include XPeng Motors, Li Auto, Futu Holdings, Guazi Used Cars, Ele.me, Youzan, Ronbay Technology, XGIMI Technology, Momo, PingCAP, Peijia Medical, Career International, Kemei Diagnostics, LexinFintech, Zihai Guo, Chuanzhi Education, Juniper Biosciences, Simple Love, SemiDrive Technology, and iSpace.

Delian Capital, established in 2011, focuses on technology-driven projects in the fields of innovative healthcare, hard technology, and frontier technology. In the realm of innovative healthcare, adhering to the core principles of “Science Based, Data Driven” and leveraging a “Global Vision, China Momentum” strategy, Delian Capital identifies high-quality niche sectors. It prioritizes early- to mid-stage investment opportunities in China, particularly in third-generation therapeutic technologies (such as cell therapy, gene therapy, gene editing, and small nucleic acids) and the IBAT (IT+AT+BT) sector.

Tengye Capital focuses on early-stage investments in high-tech innovative enterprises. It manages six funds and has invested in over 30 companies, seeking out outstanding teams and startups with core technologies and product expertise in emerging industries, while leveraging its extensive industry resources to support their growth. Its investment sectors include biopharmaceuticals and healthcare, TMT (Technology, Media, and Telecommunications), new energy and environmental protection, advanced manufacturing, and high-end equipment. Notable investment cases in the healthcare sector include Gan & Lee Pharmaceuticals, Liuhe Ningyuan, Packgene Biotechnology, Jiabao Renhe, Jinshi Bio, Northland Biotech, Genemark Biology, Ketu Medicine, Guangwei Pharma, Zhongjing Pukang, and Yudao Bio.

Shuimu Ventures is a professional investment institution dedicated to the industrialization of scientific and technological achievements, established under the Beijing Tsinghua Industrial R&D Institute (hereinafter referred to as “Industrial R&D Institute”). Leveraging the Institute’s nearly two decades of accumulation in the transformation and industrialization of scientific and technological achievements, Shuimu Ventures promotes the commercialization of major technological innovations from Tsinghua University through market-oriented approaches and professional management. Its investment portfolio includes PINS Medical, a unicorn company in China’s neuromodulation sector; SinoHytec, a leader in China’s hydrogen energy industry; and Hwatsing Technology, a manufacturer of ultra-precision equipment for integrated circuits, among other outstanding enterprises such as Daqing Biology, Jetson Voice, LargeV Instrument, Tinavi Medical Technologies, Shenli Science & Technology, and Syno United.

Optimas Capital – Committed to Being Entrepreneurs for Entrepreneurs. Specializing as a financial advisor in the healthcare sector, we adhere to the principles of early discovery, in-depth service, and long-term partnership, striving to be the most trusted long-term partner for founders. Our services focus on niche areas such as high-value medical consumables, in vitro diagnostics (IVD), and biotechnology. The team has facilitated financing for companies including Silicon Bionics, Boying Medical, Ruishen’an, Pushikang, Zhongjing Pukang, and Xiamen Ruijie.