ProfoundBio Secures Over $10 Million in Pre-A Financing Led by K2 Health Ventures to Advance Differentiated ADC Pipeline for Solid Tumor Therapy

VCBeat (WeChat ID: vcbeat) recently learned that ProfoundBio announced the completion of its pre-A financing round, raising over $10 million. This round of investmentLed by Xianfeng Qiyun, with participation from Gaorong Capital and Chang’an Capital, the financing will be primarily used to advance the development of the company’s pipeline of novel antibody-drug conjugate (ADC) oncology drugs.

ProfoundBio is a biotechnology company founded in 2018 and headquartered in Seattle, Washington, USA. The company’s three co-founders collectively possess over 50 years of experience in new drug development in the United States. Driven by their confidence in the anti-tumor potential of antibody-drug conjugates (ADCs) and their extensive expertise in ADC development, ProfoundBio has focused on the ADC sector for solid tumor treatment since its inception. In late 2019, the ProfoundBio team established a research and development center in BioBAY, Suzhou, China (ProfoundBio Pharmaceuticals (Suzhou) Co., Ltd.), to prepare for preclinical translation, clinical studies, and future commercialization.

Antibody-Drug Conjugates (ADCs) are therapeutic agents that link highly bioactive, particularly highly cytotoxic, small-molecule drugs to highly specific monoclonal antibodies via chemical linkers. The monoclonal antibody serves as a carrier to deliver the small-molecule drug in a targeted manner to specific tissues and cells, enabling precise treatment of particular tumor types while reducing toxic side effects on normal tissues. ADCs are primarily used in oncology and have become one of the most prominent areas of research in recent years.

As the lead investor in this round,Dr. Wang Yunhai, Investment Director at Xianfeng Qiyun“It has stated: ‘After more than two decades of research accumulation and innovation, antibody-drug conjugates (ADCs) have entered a phase of rapid growth, demonstrating significant application potential in the treatment of both hematologic malignancies and solid tumors. Between 2019 and 2020, five ADCs were approved globally, with dozens more in clinical development, indicating substantial opportunities for drug commercialization in this field over the next five to ten years. Xianfeng Capital is highly optimistic about the market and clinical prospects of ADCs in oncology, and values the ProfoundBio team’s extensive industry experience in ADC development and their innovative capabilities.’”

Pufang Biologics aims to leverage its proprietary platform to develop innovative targeted therapeutics, enabling tumor-specific drug delivery and achieving a wider therapeutic window, thereby enhancing treatment outcomes for cancer patients.

The three core founders are Dr. Baiteng Zhao, Dr. Tae H. Han, and Dr. Xiao Shang. Dr. Zhao earned his degree from the College of Pharmacy at the University of Texas at Austin, completed his postdoctoral research at the School of Pharmacy and Pharmaceutical Sciences at the University at Buffalo, State University of New York, and has previously held positions at internationally renowned pharmaceutical companies such as Merck & Co. and Seagen.

From left to right: Dr. Baiteng Zhao, Dr. Tae H Han, and Dr. Xiao Shang

During his more than eight years at Seagen, Dr. Zhao contributed to the preclinical and clinical development of multiple antibody-drug conjugate (ADC) therapies. He possesses profound expertise and extensive experience in the pharmacokinetics and clinical pharmacology of ADCs, has been invited on numerous occasions to deliver presentations at international conferences, and is a recognized expert in ADC research. He currently serves as Chief Executive Officer of BioThera Solutions.

Dr. Tae H Han, another founder of Pufang Biologics, earned his doctorate from the University of California. With 15 years of R&D experience in small-molecule and antibody-based therapeutics, he has previously held positions at internationally renowned pharmaceutical companies, including Merck & Co., Seagen, AbbVie/Stemcentrx, and Amphivena. He has contributed to the development of multiple antibody-drug conjugate (ADC) drugs, including ADCETRIS.^TMGlobal Market Approval, Rova-T^TMclinical development, among others. Currently serves as the Chief Operating Officer of BioThera Solutions.

Dr. Shang Xiao is the Chief Technology Officer of BioThera Solutions. He graduated from the University of Alberta in Canada and conducted postdoctoral research in bioorganic chemistry at the University of Toronto. With over 20 years of experience in early-stage R&D, CMC process development, and manufacturing, Dr. Shang previously held positions at Chinese and American pharmaceutical companies, including Seagen and Beijing Sinocan Pharmaceutical Technology Co., Ltd. His expertise spans the discovery of antibodies, single-chain antibodies, peptide-drug conjugates, and small-molecule drugs, as well as process development for active pharmaceutical ingredients (APIs) and formulations, GMP manufacturing, and plant operations. He has supported the advancement of multiple preclinical and clinical projects and was involved in all stages of ADCETRIS, from candidate selection to commercial manufacturing.

The three core founders have accumulated extensive and complementary R&D experience in the field of antibody-drug conjugates (ADCs), forming a robust clinical translation team. Their end-to-end involvement in ADC drug development enables them to optimize study designs from a holistic perspective, laying a solid foundation for Bio-Thera Solutions’ deep engagement in the ADC sector. Focusing on unmet clinical needs, the company adopts the latest drug development concepts and strategies to develop safe and effective novel anti-tumor drugs with broad indications, targeting both preclinically and clinically validated oncology and immune targets, with the aim of delivering more effective therapeutic options to cancer patients as soon as possible.

In corporate operations and talent management, the founding team draws on advanced international management philosophies while adapting to local needs in China. Upholding a “people-oriented” approach and adhering to the principle of “mutual growth for employees and the enterprise,” the team strives collectively within a corporate culture grounded in “integrity,” “mutual trust,” and “respect,” contributing its share to the cause of human health.

Currently, there are nine ADC drugs approved on the market, with dozens more under clinical investigation. The mechanism of action of ADC drugs is well-defined, and their anticancer potential is unquestionable. However, over the past two decades, the number of newly approved ADCs has been limited, indicating that ADC drug development still faces numerous difficulties and challenges, particularly in the selection of tumor targets and corresponding conjugated payloads.

Recognizing the current limitations of ADC drugs, Pufang Biotech is establishing a new technology platform to design and synthesize high-potency drugs with more ideal mechanisms of action and physicochemical properties, while developing optimized linkers for the creation of next-generation ADCs, thereby achieving greater breakthroughs in cancer treatment.

Dr. Zhao, Co-founder of Pionyr Biosciences, emphasized that although the company operates within the antibody-drug conjugate (ADC) sector, it focuses on developing differentiated ADC products targeting indications with urgent unmet medical needs, while taking into account future clinical development and competitive market dynamics. The innovative drug platform established by the company is expected to further widen the therapeutic window, expand the range of druggable targets, and rapidly broaden the R&D pipeline and indication portfolio, building upon the safety and efficacy profiles of existing therapies. To improve the success rate of translation from laboratory to clinic, the company has also adopted advanced computer modeling for predictive analysis and more efficient in vitro and in vivo screening strategies in its research.

In terms of selecting indications for ADCs, Puyang Biopharma has primarily focused on the field of solid tumor therapy. “Compared with hematologic malignancies, which already have multiple novel treatment options and intense market competition, there is a more urgent need for new drugs with superior efficacy in solid tumors, and the market potential is also broader.”Dr. Baiteng ZhaoHe stated, “Many treatment regimens with well-established efficacy in hematologic malignancies have shown suboptimal performance in solid tumors, particularly targeted therapies. This reflects the challenges associated with tumor-specific drug delivery and biases in drug design. We are confident that breakthroughs will be achieved in these areas.”

Regarding thisDr. Wang Yunhai, Xianfeng QiyunIt was also stated: “All members of the ProfoundBio team come from Seagen, forming a core team with hands-on experience in every stage, including target selection, drug-linker optimization, drug screening, and process development. Meanwhile, the company has developed a drug-linker platform with independent intellectual property rights, positioning it to compete on the international stage. VCBeat is honored to collaborate with the ProfoundBio team to jointly advance the development of ADC drugs in China, and we hope that these therapies will reach the market soon to benefit cancer patients.”

K2VC, founded in 2010, has been committed to supporting and accompanying outstanding entrepreneurs in driving significant advancements in business and technology. Its affiliates, K2 Evergreen and K2 Qiyun, invest across sectors including the internet, healthcare, and technology/consumer goods, having backed more than 500 high-growth startups.

In the healthcare sector, Xianfeng Qiyun focuses on early-stage investments, driven by professional research, guided by clinical needs, and supported by a specialized post-investment service system. It strategically invests in innovative drugs and biotechnology, as well as novel diagnostic products and medical devices, fostering leading enterprises across multiple niche segments.

Gaorong Capital is one of the most active venture capital firms in China, dedicated to identifying outstanding entrepreneurs and co-creating long-term value with them. Founded in January 2014 by managing partners Zhang Zhen, Gao Xiang, and Yue Bin, Gaorong Capital focuses on early-stage and growth-stage investments, with a particular emphasis on innovative sectors such as new consumer trends and emerging technologies. Over six years, the total assets under management of its USD and RMB funds amounted to approximately RMB 28 billion.

To date, 14 companies invested in or held by Gaorong Capital have successfully completed initial public offerings (IPOs), and more than 20 portfolio companies have achieved valuations exceeding $1 billion, with many emerging as leaders in their respective industries. These include Pinduoduo (NASDAQ: PDD), a pioneer in new e-commerce; Huya Live (NYSE: HUYA), an interactive live-streaming platform dedicated to technology-driven entertainment; Gaotu Techedu Inc. (NYSE: GSX), a leading K12 online education provider in China; Yixian E-Commerce (NYSE: YSG), a leader in China’s beauty market; and Roborock (688169.SH), a frontrunner in the intelligent cleaning robot sector.

Changan Private Capital boasts a 22-year history in equity investment, positioning itself as a “loyal investor with shared interests.” Its partners utilize their own capital to make ultra-long-term technology investments, focusing on value-creating enterprises that become industry leaders through organic growth. The firm primarily covers niche sectors such as innovative drugs and medical devices, semiconductors, automotive and aerospace technologies, and cybersecurity. Adhering to the investment principle of “few but excellent,” Changan has invested in more than 70 companies, 16 of which have gone public. Notably, Walvax Biotechnology set historical records on the ChiNext Board for both its IPO price and P/E ratio; while Chipscreen Biosciences became the first innovative drug company listed on the STAR Market, setting a historical record for its IPO P/E ratio.