Shenzhou Bio Raises Nearly RMB 100 Million in Pre-A Financing Led by Qiming Venture Partners and Lilly Asia Ventures

VCBeat (WeChat ID: vcbeat) has learned that XsellSmart, an innovative next-generation stem cell therapy company, has officially announced the completion of its nearly RMB 100 million Pre-A financing round. The round was co-led by Qiming Venture Partners and Lilly Asia Ventures, with participation from Daoyuan Capital and Jiacheng Capital. All existing angel-round investors—Frees Fund, YuanSheng Venture Capital, and TEDA Science & Technology Investment—followed on with additional investments.This round of financing will be primarily used for the research and development of XsellSmart's core product pipeline and the construction of its manufacturing facilities.

XsellSmart is committed to providing scalable, low-cost stem cell therapy solutions for major diseases, exemplified by Parkinson’s disease. Human induced pluripotent stem cells (hiPSCs) possess the potential for unlimited proliferation and multilineage differentiation. By inducing human pluripotent stem cells to differentiate into functional cells in vitro and transplanting them to replace damaged or degenerated cells in the body, this approach holds promise for treating major diseases that currently lack effective therapeutic solutions.

XsellSmart’s core team possesses unique and robust expertise in the innovation and translational application of cutting-edge international technologies in the field of stem cell therapy. XsellSmart’s founder, Li Xiang, has dedicated over a decade to frontier scientific research and industrialization in stem cells and regenerative medicine.

Dr. Li Xiang graduated from the School of Life Sciences at Peking University,Ph.D. student under the supervision of Professor Deng Hongkui, an internationally renowned authority in stem cell reprogramming, pursued postdoctoral research at the University of Wisconsin–Madison in the United States after graduation,Completed postdoctoral training under the supervision of Professor Suchun Zhang, a leading authority in the field of stem cell differentiation into neural subtypes., Dr. Li Xiang served as a Postdoctoral Fellow at the Parkinson’s Foundation in the United States, specializing in the treatment of Parkinson’s disease using dopaminergic neurons derived from stem cell differentiation.

After accumulating extensive experience at prestigious stem cell research institutions both in China and abroad, Li Xiang transitioned from academia to industry, joining Sana Biotechnology in the United States as a Senior Researcher. He witnessed Sana’s rapid growth from its startup phase, including its record-breaking initial financing round in the global cell therapy sector and its rise to become one of the top ten publicly listed biotechnology companies in the United States since 2018. Upon returning to China, Li Xiang joined a domestically listed innovative pharmaceutical company, serving as the Head of R&D for stem cell-based innovative drugs and Chief Technology Officer.

In 2021, Li Xiang spearheaded the founding of XsellSmart, together with Xiao Xiong, Yan Pixi, and others. The company has since built a full-time professional team of nearly 40 members. Its core team comprises scientific and industry experts from prestigious universities and research institutions both in China and abroad, such as Peking University, Tsinghua University, and the University of California. These experts have long been deeply engaged in the fields of stem cells, regenerative medicine, and gene editing, with an average industry experience of over 10 years.

XsellSmart is committed to providing innovative cell therapy solutions for major diseases that currently lack effective clinical treatments. The company has established a 1,400-square-meter R&D center and completed the initial setup of its key technology platforms.

Dr. Li Xiang, Founder, CEO & CSO of XsellSmart

Dr. Li Xiang, Founder, CEO & CSO of XsellSmart, stated:“XsellSmart Expresses Gratitude: Leading professional investment firms with benchmark-setting leadership and influence in the biopharmaceutical sector, Qiming Venture Partners and Lilly Asia Ventures, have jointly led XsellSmart’s latest round of financing. We thank these two top-tier industry institutions for recognizing XsellSmart’s competitiveness, values, and mission, and for supporting the XsellSmart team in making breakthrough contributions.”

XsellSmart recognizes and positions itself as a pragmatic participant in the macro-level advancement of stem cell therapy and industrialization in China, while remaining a humble learner. All members of XsellSmart are committed to providing novel cell therapy solutions for major critical diseases that currently lack effective clinical treatments. The development of pluripotent stem cell-based therapeutics requires the integration of multiple key processes, presents complex technical barriers, and faces significant challenges. Behind the research and development of every innovative drug are millions of real lives and patient families suffering from disease; there are no shortcuts—only by staying true to our original mission, working diligently, and proceeding with solid, grounded efforts can we succeed.

XsellSmart has gained recognition due to three core competitive advantages:

1. Clarify the long-term mission and values of “Unparalleled National Talent, Blessing Countless Lives”: cultivate diligently over the years, accumulate strength, and achieve breakthroughs through sustained effort;

2. Industry Background and International Professional Team: A team of experts deeply rooted in this field, working full-time with full commitment;

3. Clear technical and market positioning: To provide low-cost, universal innovative stem cell therapeutic solutions for major diseases that currently lack clinical treatment options, exemplified by Parkinson’s disease.

This new round of financing has further strengthened XsellSmart’s investor lineup, attracting professional investment institutions and strategic partners that have long focused on the biopharmaceutical sector, bringing significant industry influence and resources, an international perspective, and long-term cornerstone investment attributes. XsellSmart expresses its gratitude to Qiming Venture Partners, Lilly Asia Ventures, Daoyuan Capital, and Jiacheng Capital for recognizing XsellSmart’s competitiveness, as well as to existing shareholders Fengrui Capital, Yuansheng Venture Capital, and TEDA Science & Technology Investment for their full additional support. XsellSmart’s robust investor base will provide steadfast support for the company’s rapid development.

“XsellSmart warmly welcomes new strategic investors and partners who share our vision to join the XsellSmart community, supporting our team’s commitment to the mission of ‘bringing benefits to millions of patient families.’”

Qiming Venture Partners Executive Director Chen Kan stated:“Major neurological disorders, exemplified by Parkinson’s disease, present substantial unmet clinical needs. With the continuous maturation of stem cell technologies, human induced pluripotent stem cells (hiPSCs) hold immense medical value and are poised to offer new pathways for the development of clinical treatments for serious neurological conditions. XsellSmart boasts an R&D and management team with a global perspective and extensive industry experience in the field of stem cell therapy. Qiming Venture Partners firmly recognizes XsellSmart’s long-term expertise in this domain and remains committed to providing sustained support for its growth. Qiming Venture Partners believes that the XsellSmart team will accelerate the clinical development of its products, creating new possibilities for cell replacement therapies to address major human diseases and ultimately benefiting a broad patient population.”

Zou Jieyu, Managing Director of Lilly Asia Ventures, stated:“The clinical application of induced pluripotent stem cells (iPSCs) in cell therapy is a sector that LAV highly values and prioritizes. Outstanding companies with substantial industry expertise and competitive advantages will emerge as leaders. Dr. Li Xiang’s team at XsellSmart has accumulated years of frontline research and development experience across various technical domains, positioning the company to build a globally influential industrialization platform for stem cells. LAV will provide comprehensive, long-term support to XsellSmart in the iPSC field, empowering it to become an industry leader, make breakthrough contributions, and benefit patients in China and around the world at the earliest opportunity.”

Zhang Dafeng, Founding Partner of Daoyuan Capital, stated:“The field of pluripotent stem cells represents a vast market brimming with potential. XsellSmart stands out as one of the few professional teams in this sector to have successfully integrated the entire upstream and downstream value chain. This is a team characterized by immense passion, youthful vigor, and high execution efficiency. From our initial acquaintance to the present day, the founders and their team have consistently delivered pleasant surprises. We are delighted to serve as early discoverers of value, embarking on this journey alongside the youthful XsellSmart at the dawn of a new chapter for the field. Together, we will grow and strive to address clinically and socially urgent disease challenges of significant importance, thereby contributing to the advancement of human health.”

Li Li, Founding Partner of Jiacheng Capital, stated:“Jiacheng Capital has always firmly supported entrepreneurs who believe in technology-driven business innovation. The XsellSmart team possesses internationally leading scientific research backgrounds and industry experience in the field of stem cell therapy. By leveraging innovative concepts and advanced research technologies, they are tackling major diseases in the human nervous system and promoting the development of China’s stem cell therapy industry—an endeavor marked by a strong sense of mission. Jiacheng Capital is delighted to partner with XsellSmart in jointly exploring the promising future of life sciences.”

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 industries such as TMT and Healthcare. To date, Qiming Venture Partners has invested in more than 380 high-growth innovative enterprises, among which over 130 have achieved exits through listings on exchanges including the New York Stock Exchange (NYSE), NASDAQ, the Hong Kong Stock Exchange, the Taipei Exchange (TPEx), 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 leading life sciences and healthcare venture capital fund, with offices in Shanghai, Hong Kong, and Silicon Valley, USA. As one of the earliest biopharmaceutical-focused funds to establish a presence in China, LAV has been continuously investing in China’s healthcare industry for over a decade. Currently, LAV manages six USD-denominated funds and five RMB-denominated funds, with total assets under management exceeding the equivalent of $4.5 billion. Its team comprises more than 30 accomplished professionals with expertise in scientific research, clinical medicine, investment management, and operations. LAV’s 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.

Daoyuan Capital is a leading equity investment firm specializing in the healthcare and medical sectors. Daoyuan Capital currently manages ten RMB-denominated funds and two USD-denominated funds, with investments in 64 high-quality portfolio companies. Among these, nine companies were listed on the Hong Kong Stock Exchange (HKEX) and the STAR Market between 2019 and 2020. As of early 2021, Beikang Medical, a portfolio company of Daoyuan Capital’s funds, has been listed on the HKEX. Additionally, three other portfolio companies have passed the listing committee reviews of the STAR Market and the ChiNext Board, while four have had their initial public offering (IPO) applications accepted. It is expected that more than ten of Daoyuan Capital’s portfolio companies will be listed on major domestic and international stock exchanges in 2021 and 2022.

Next Capital, founded in 2017, is an early-stage investment fund focused on the technology sector. Firmly believing in technology-driven business innovation, it aims to identify high-potential future business leaders and co-create the future. To date, Next Capital has invested in more than 50 startups across sectors including consumer internet, biomedicine, enterprise services, and hard tech. Among these portfolio companies, over 20 have grown into super unicorns, unicorns, or industry-leading enterprises.