Safeguard Genomics Completes Over RMB 100 Million Series B Financing to Advance Product Iteration for Precision Prevention, Diagnosis, and Treatment of Pediatric Genetic and Rare Diseases

VCBeat (WeChat ID: vcbeat) has learned that Cipher Gene (Beijing) Genomics Technology Co., Ltd. (hereinafter referred to as “Cipher Gene”) recently announced the completion of its Series B financing round, exceeding RMB 100 million.Led by Shuimu Ventures, with participation from TusStar and Yuanhui Ventures, while existing shareholders Chengshu Investment and Shengwan Investment continued to increase their investments.. The proceeds from this round of financing will be primarily used for the research, development, and registration of clinical products, as well as market expansion and team building.

Previously, Cipher Gene successively completed its angel round, Series A, Series A+, and Pre-Series B financing in 2016, 2018, 2019, and 2020, respectively. The company has largely maintained an annual fundraising pace, earning significant recognition from the capital market.

For this round of financing,Dr. Yu Weishi, Founder and CEO of Cipher GeneIt was stated that since its official commercialization in 2018, the company has completed four rounds of financing. This fully demonstrates the trust and support of professional medical investment institutions in Cipher Gene, while also reflecting the rapidly increasing value of genetic data in the field of pediatric genetic/rare diseases. The path to prevention, control, diagnosis, and treatment of genetic/rare diseases is fraught with thorns and challenges. Cipher Gene will continue to deepen its clinical engagement, sustain technological innovation and translation, and provide more precise and reliable genetic screening and diagnostic/treatment solutions for children with genetic/rare diseases in China, ensuring better health for every child.

Dr. Mengmeng Liang, Co-founder and Chief Operating Officer of Cipher Gene“We are deeply honored to receive recognition and continued support from more investment institutions as Cipher Gene embarks on its second five-year plan. Leveraging genetic data to facilitate precision diagnosis and treatment of pediatric genetic disorders and rare diseases is a ‘protracted campaign’ that requires both steady, step-by-step progress and exploratory innovation. By focusing on pediatric genetic disorders, we provide customers with a dual-pronged service system combining assisted diagnosis and clinical research, thereby maximizing the value of data—a approach that has garnered increasing affirmation from our clients. Looking ahead, we sincerely hope that the concerted efforts and sustained dedication of the Cipher Gene team will not only tangibly improve the current challenges of difficult diagnosis and treatment faced by patients with rare diseases, but also establish a successful paradigm for entrepreneurship in this field.”

Cipher Gene is a biotechnology company specializing in the analysis of genomic big data and the provision of precision medicine services, recognized as a National High-Tech Enterprise. The company boasts an R&D team with backgrounds from world-class research institutions, including Harvard University, the U.S. National Institutes of Health (NIH), and the University of California, San Francisco. By integrating information from global large-scale genetic disease databases and establishing a leading Chinese database in the field of pediatric genetic disorders, Cipher Gene has further developed a comprehensive, accurate, and rapid AI-driven platform for healthcare big data analytics through deep learning. Currently, the company holds mature patented technologies that enable full-lifecycle data management, simplifying, professionalizing, and automating data analysis. This approach effectively addresses the challenges clinicians face in interpreting clinical and research data, provides multi-dimensional support for drug development and companion diagnostics, and delivers high-quality, comprehensive services to clients.

Leveraging its leading, mature patented technologies, the company not only provides comprehensive analysis of clinical and research data but also actively gathers clinical needs to drive the development of innovative patented technologies. To date, it has published nearly 70 international academic papers and secured approximately 160 intellectual property rights, including patents, delivering data-driven products and services to clinical diagnosis and treatment institutions as well as research organizations.

In China, there are over 10 million children with genetic disorders, with nearly 1 million new pediatric cases diagnosed each year. Globally, more than 7,000 rare diseases have been identified, 80% of which are caused by genetic factors. For patients with these genetic conditions, it takes an average of 5–8 years to achieve a confirmed diagnosis, at a cost exceeding RMB 50,000, while the effective treatment rate stands at only 5%.

Due to the lack of clinical awareness and data support for genetic and rare diseases in the market, the needs of various stakeholders related to these conditions have remained unmet. Meanwhile, gene testing-based technologies for auxiliary diagnosis and screening of genetic disorders are still in their infancy. There is an urgent market need for standardized clinical education methods and comprehensive product solutions to develop potential clinical applications. This aims to provide clinicians with end-to-end solutions—from disease screening and auxiliary diagnosis to treatment guidance and even disease discovery—thereby better addressing the needs of all parties involved.

Currently, genetic testing for hereditary diseases based on NGS technology demonstrates significant clinical value and promising application prospects, poised to become the next major growth frontier following NIPT and tumor companion diagnostics. This aligns precisely with Cipher Gene’s strategic focus. Since its establishment in 2015, the company has remained dedicated to genetic testing for hereditary and rare diseases, covering neurological hereditary disorders, endocrine hereditary disorders, as well as other hereditary conditions affecting the hematopoietic, respiratory, ocular, and renal systems.

The company has established The Merlion system, based on its proprietary intellectual property, and has laid out a complete closed-loop service and product portfolio ranging from newborn genetic disease screening and clinical auxiliary diagnosis to functional validation and drug R&D. In terms of newborn genetic disease screening, coverage rates in developed countries and regions such as Europe, the United States, and Japan approach 100%, whereas the domestic market started later and currently has low screening coverage, now entering a phase of rapid market expansion. Cipher Gene addresses clinical needs by offering an early-screening panel kit for newborns using NGS technology, targeting 54 types of congenital genetic diseases that severely impact health but whose symptoms can be significantly improved if diagnosed and treated promptly during the neonatal period. The company is also preparing to apply for registration certification with the National Medical Products Administration (NMPA).

In the field of auxiliary diagnosis of pediatric genetic diseases, Cipher Gene distinguishes itself from other service providers by offering a comprehensive solution encompassing “clinical phenotype–pathogenic/novel gene discovery–functional validation.” The company’s independently developed whole-exome sequencing product, iWES, is customized and optimized for Chinese genetic disease populations. It covers all exons, mitochondrial DNA, and all known pathogenic variants in non-coding regions, thereby maximizing clinical detection rates. Reportedly, the company can efficiently deliver automated data analysis and diagnostic reports within 20 days, achieving the fastest turnaround time in the industry.

Meanwhile, in 2020, the company established a functional validation platform based on molecular biology and the zebrafish model organism. This platform supports the discovery of novel genes/loci and pathogenicity verification in clinical testing, facilitates the upgrading and iteration of core databases by establishing associations between new genes and phenotypes, and provides robust support for subsequent drug screening services. Cipher Gene’s high-quality data analysis and mining capabilities, combined with its high-throughput functional validation platform, offer a powerful service platform for gene-level disease discovery and the development of innovative therapies and drugs.

Currently, Cipher Gene has established a comprehensive sales network across China, providing scientific research and technical support to over 2,000 clinicians. The company has formed partnerships with more than 300 Grade III Class A hospitals, completed nearly 100 clinical research collaboration projects, covered 90% of Grade III Class A children's hospitals in the terminal market, and served approximately 50,000 families of pediatric patients.

Regarding the investment in Cipher Gene,Shuimu Venture CapitalIt is acknowledged that the precise diagnosis and treatment of genetic diseases have long been a challenging issue in medicine. The rapid development of Next-Generation Sequencing (NGS) and the emergence of gene editing technologies have brought about transformative opportunities for the entire industry, with the value of high-quality genetic data becoming increasingly prominent. Over the past five years, Cipher Gene’s founding team has demonstrated exceptional execution and strategic capabilities, which are fully reflected in the company’s comprehensive product advantages, future technological reserves, and commercial promotion capabilities. We are optimistic about Cipher Gene’s potential and look forward to supporting its growth into an industry leader. By leveraging genetic data as a driver, we aim to continuously launch innovative product solutions, advance the application of gene technology, address more clinical pain points, and benefit a broader patient population.

Chengshu InvestmentStatement: As the lead investor in Cipher Gene’s previous financing round and a participating investor in this round, we are pleased to further increase our investment in Cipher Gene’s new financing round. As the pioneer of an integrated platform for precise prevention, control, diagnosis, and treatment of pediatric genetic diseases in China, Cipher Gene has established comprehensive and prominent competitive advantages in this field. We are highly optimistic about the growth potential and competitiveness of the company and its founding team, and we look forward to accompanying the company on its long-term journey of shared growth.

Shuimu Venture Capital is a specialized investment institution for the industrialization of scientific and technological achievements, established under the Beijing Tsinghua Industrial R&D Institute. Leveraging the Institute’s nearly two decades of accumulation in the transformation and industrialization of scientific and technological achievements, Shuimu Venture Capital promotes the implementation and commercialization of major technological breakthroughs from Tsinghua University through market-oriented approaches and professional management. To date, Shuimu Venture Capital has invested in more than 60 projects, including Tinavi Medical Technologies (688277), the first company listed on the STAR Market in the medical robotics sector; SinoHytec (688339), a leader in China’s hydrogen energy industry; Huazhuo Jingke, a manufacturer of ultra-precision equipment for integrated circuit manufacturing; PINS Medical, a unicorn in China’s neuromodulation field; as well as a number of other outstanding enterprises such as Daqing Biology, Topvue Imaging, Jetson Voice, Longsee Instruments, Shenli Technology, Syno United, and Qingpu Technology.

Chengshu Investment focuses on growth-stage investments in the healthcare sector, striving to become the professional investment firm with the deepest understanding of “growth” within the industry. The Chengshu management team possesses profound insights into the laws of corporate growth, along with extensive industry resources and capital market experience. It is committed to continuously empowering the growth of portfolio companies and creating long-term, sustainable value for investors.

TusStar Venture Capital manages funds totaling over RMB 2 billion, covering angel fund-of-funds, market-oriented funds, and incubator funds. By the end of 2020, the funds managed by TusStar Venture Capital had cumulatively invested in more than 300 companies, with a total investment amount exceeding RMB 600 million. Up to 90% of its investments were made in technology-driven innovative enterprises at the angel stage, and over 70% of these portfolio companies successfully secured subsequent rounds of financing. For five consecutive years, TusStar Venture Capital has been ranked among the “Top 30 Early-Stage Investment Institutions in China” by Zero2IPO. It has also received dozens of industry awards, including “Top 10 Angel Investment Institutions” by the Asset Management Association of China (AMAC) Private Equity and Venture Capital Branch and “Top 10 National Private Equity Funds” by the China Fund of Funds Alliance, earning widespread industry recognition and attention. Focusing on technology sector investments, TusStar Venture Capital prioritizes high-tech, high-growth startups in fields such as TMT, integrated circuits, big data, artificial intelligence (AI), 5G communications, Internet of Things (IoT), energy conservation and environmental protection, new energy, new materials, general health, advanced manufacturing, education, enterprise services, and mass consumer goods.

Established in 2004 and spun off from a leading domestic securities firm, the company is composed of senior experts in investment banking, industry research, and corporate management. Dedicated to providing professional equity investment management services, it is deeply rooted in the Chinese local market, upholding professionalism and pragmatism while prioritizing mutual trust with clients and partners. After years of accumulation, the firm has established mature operational models in project sourcing, analysis and evaluation, execution, investment processes, and post-investment management. With extensive experience in equity investment management, it has become one of the most influential local equity investment institutions. Currently, it manages ten equity investment funds with entrusted assets under management totaling RMB 5 billion. Its investment focus spans emerging industries and consumption upgrade sectors, including advanced manufacturing, frontier technologies, and consumer entertainment.

Yuanhui Venture Capital is a private equity investment management firm founded in 2010 by Mr. Zhang Fan, an outstanding investor and seasoned philanthropist. Positioned on a “venture capital + philanthropy” model, the firm takes a long-term perspective to identify and invest in mission-driven entrepreneurs and growth-stage companies possessing hard technologies. By providing investment and incubation support, Yuanhui accompanies these enterprises through their long-term growth, gradually integrating corporate and entrepreneurial social responsibility with modern philanthropy, thereby leveraging business and technology to promote the sustainable development of contemporary charitable causes. Notable success stories include Sinocare, ChineseAll, Silk Road Visual Technology, Maxscend Microelectronics, Montage Technology, JenKem Technology, Shichuang Energy, Moviebook, Bangbangxing, Quna, Eishu Information, Haijieya, Shenli Technology, Yihong Intelligence, and GaoTuo Xunda.