TreeFrog Therapeutics Secures €7.1 Million Series A Funding to Scale Stem Cell Production Technology

VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that stem cell production company TreeFrog Therapeutics announced on May 13, 2019, in Bordeaux, France, that it had raised €7.1 million (approximately $7.8 million) in its Series A financing round. The round was led by the venture capital firm XAnge (Siparex Group), with participation from new investor Galia Gestion and existing seed-round investors Irdi Sorivic, Aquiti Gestion, and SATT Aquitaine.

In addition to securing €6.5 million ($7.2 million) in equity financing, TreeFrog Therapeutics also obtained €600,000 ($670,000) in non-dilutive funding in March from Nouvelle-Aquitaine, Bpifrance (the French National Investment Bank), and the French Ministry of Higher Education, Research and Innovation.

The Series A funding will be used to scale up the production of stem cells using TreeFrog Therapeutics’ proprietary C-Stem technology, bring the C-Stem technology into compliance with cGMP standards by 2021, and develop cell therapy research programs for other diseases (such as Huntington’s disease, Parkinson’s disease, heart failure, diabetes, and NASH), with the goal of initiating its first clinical trials by 2024.

TreeFrog Therapeutics is a company focused on stem cell therapy research, registered and established in November 2018. The company independently developed the C-Stem technology platform, which provides scalable end-to-end 3D solutions. By overcoming current critical challenges in stem cell manufacturing, it significantly reduces the cost of stem cell therapies, enabling a medical revolution in cell therapy.

Over the past four years, the company has secured a total of €3 million ($3.3 million) in funding support from the technology transfer offices of the University of Bordeaux, the French National Centre for Scientific Research (CNRS), the French National Research Agency (ANR), and AST Innovations in the Nouvelle-Aquitaine region of France.

The key bottleneck in cell therapy research is the culture of pluripotent stem cells. Due to the fragility and difficulty in cultivating stem cells, current cell therapy solutions face challenges such as technical development difficulties, high cell processing costs, and low cell quality. To address these challenges, TreeFrog Therapeutics has developed C-Stem technology. C-Stem is the company’s proprietary technology for stem cell culture, aimed at improving stem cell production efficiency and significantly reducing the cost of cell therapies. Through its 3D cell culture system, this technology enables large-scale production of stem cells in a short period while maintaining their genomic integrity.

TreeFrog Therapeutics recently announced that it has delivered the first batch of 143 million human induced pluripotent stem cells (iPSCs) to the Imagine Institute for testing. These cells completed expansion within seven days while maintaining 100% genomic integrity, with an expansion rate approximately 10 times higher than the current industry standard.

Guilehem de Vregille, Investment Director at XAnge, stated, “TreeFrog Therapeutics demonstrated strong commercial appeal early on, and we believe the team’s capabilities in commercialization and execution are unquestionable.”

Maxim Feyeux, President and Chief Operating Officer of TreeFrog Therapeutics, stated, “This round of financing marks our cumulative funding reaching up to €8 million (approximately $9 million). We will leverage existing resources to achieve technological breakthroughs, implement our development plans, and drive company growth.”

Kevin Alessandri, CEO and CTO of TreeFrog Therapeutics, stated, “Over the past six months, several major pharmaceutical companies have approached us to collaborate on the development of new cell therapy programs. Moving forward, our path is clear, and through joint efforts with our partners, we aim to initiate our first clinical trials within three to five years.”

XAnge is a Franco-German venture capital firm that has been acquired by the Siparex Group, an investment institution in the French private equity sector. The company primarily invests in influential startups in the digital and technology sectors, having participated in investments in well-known companies such as Chauffeur Privé, Evaneos, and AB Tasty. It manages €450 million in assets.

Headquartered in Toulouse, Montpellier, and Bordeaux, France, Irdi Soridec Gestion boasts over 35 years of investment experience, primarily focusing on venture capital and acquisitions across all stages for enterprises in southwestern France. The firm manages more than €300 million in assets, including the IRDInov2 technology seed fund provided by the French National Seed Fund (FNA).

Headquartered in Bordeaux, France, Galia Gestion is a subsidiary of Alliance Entreprendre, specializing in venture capital and private equity investment. Since its inception, Galia has facilitated €160 million in financing for innovative startups. It currently manages funds for 50 portfolio companies, with individual investment commitments of up to €4 million.

Aquiti Gestion, established in France in 1998, is a venture capital and private equity firm primarily investing in startups and small and medium-sized enterprises (SMEs). The company employs diverse financing mechanisms, has invested in more than 500 companies, and participated in the establishment and development of approximately 150 enterprises. Currently, Aquiti Gestion has built an investment network comprising 50 companies and holds €100 million in capital.

SATT Aquitaine, established in 2012, is a technology transfer company dedicated to accelerating the commercialization of academic research outcomes. Its operations encompass all stages of technology transfer: identifying innovative inventions and market demands, technology incubation (angel financing), intellectual property assignment, negotiation of operational terms, and support for market deployment (licensing agreements, collaborative partnerships, startup formation, and incubation). It has invested in 21 startups and facilitated the launch of 21 products and services, with total investments amounting to €21 million.

Imagine is a novel, innovative medical and research institution that connects researchers, physicians, and patients to jointly develop therapies for curing genetic diseases. By integrating information on the treatment of genetic disorders, Imagine accelerates the development of new therapeutic and diagnostic approaches, facilitating the translation of research findings into clinical applications to benefit patients and their families.

(Compiled by Tang Lulu)