HopeGen Completes Nearly RMB 100 Million Series B Funding Led by YF Capital

Image provided by GrandOmics

On July 2, VCBeat (WeChat ID: vcbeat) learned that Beijing GrandOmics Biosciences Co., Ltd. (“GrandOmics”) has recently successfully completed a Series B financing round of nearly RMB 100 million.

This funding round was led by Yuanyi Capital, with follow-on investments from the Changping Technology Industry Fund of Funds (managed by Changfazhan) and existing shareholder Matrix Partners China. JoyCap Capital served as the exclusive financial advisor for this transaction.

As China’s first and the world’s largest third-generation sequencing application company, as well as the world’s largest ONT sequencing center, GrandOmics is equipped with 20 GridION X5 units, one PromethION, six PacBio Sequel systems, and two Bionano Saphyr platforms, making it one of the few companies globally with a comprehensive suite of third-generation sequencing technology platforms.

Meanwhile, GrandOmics is currently the only company in China and among the first globally to receive official certification for ONT PromethION sequencing services.

Image provided by GrandOmics

Meanwhile, GrandOmics has established a high-performance computing platform with large memory capacity specifically for third-generation sequencing technologies. Through successful collaborations with Alibaba Cloud and Huawei Cloud, the company has integrated its third-generation sequencing data analysis pipelines into cloud computing platforms, enabling it to provide high-quality computational and storage services for third-generation sequencing to customers worldwide.

Currently, GrandOmics Group owns two major brands, “FutureOmics” and “GrandOmics,” catering to research and clinical users, respectively. Since 2011, FutureOmics has accumulated extensive practical experience in third-generation sequencing, becoming the leading brand for third-generation sequencing research services in China.

Image provided by GrandOmics Biosciences

Since 2015, GrandOmics Biosciences has been dedicated to the research and clinical translation of third-generation sequencing technologies, conducting in-depth R&D and accumulating intellectual property in the application of these technologies to genetic disease testing, tumor diagnosis, assisted reproduction, and microbiome analysis.

Third-generation DNA sequencing technology, also known as single-molecule DNA sequencing technology, offers read lengths that can exceed those of second-generation sequencing by more than 100-fold. It has the advantage of lacking GC bias and can even directly detect base modifications on DNA/RNA.

However, for a long time, third-generation sequencing technology has faced challenges and skepticism in its applications due to high sequencing costs and high error rates in single reads.

With the advancement of PacBio and ONT technology platforms, along with improvements in corresponding bioinformatics analysis capabilities, the issue of high error rates in single reads has been effectively overcome. These technologies are now widely applicable in areas such as single-nucleotide variants (SNVs), structural variants (SVs), and methylation modifications.

With the launch of ONT’s latest sequencer, PromethION, sequencing costs have decreased exponentially compared to current levels, while sequencing throughput is projected to increase by more than 1,000-fold. Third-generation sequencing technology is poised to create a new blue ocean of clinical applications comparable to NIPT.

Previously, GrandOmics Biosciences secured its Series A financing in late 2016, co-led by Matrix Partners China and SAIF Partners, with participation from Tsinghua Innovation Capital.

Following the completion of its Series B financing, GrandOmics will increase investment in its platform and R&D to advance the clinical application of third-generation sequencing technology in the field of genetic diseases; strengthen collaboration with upstream partners to commercialize third-generation sequencing technologies and clinical applications; and actively expand into the international scientific and technological services market, providing global research and medical partners with more cutting-edge and comprehensive third-generation sequencing services.

Image provided by GrandOmics

Wang Depeng, CEO of GrandOmics, stated, “The GrandOmics team has been deeply engaged in the field of third-generation sequencing for over six years. We have developed profound insights into the technological trends and practical application scenarios of third-generation sequencing, and have formulated a clear strategic roadmap.”

Following its Series A financing, GrandOmics achieved its strategic goal of becoming a leading company in the domestic third-generation sequencing application market. After securing Series B financing, GrandOmics will significantly increase its R&D investment and actively strive to accumulate more intellectual property rights, with the aim of realizing its strategic vision to become a global leader in the field of third-generation sequencing—driven by technological R&D, grounded in clinical applications, and achieving balanced development in both domestic and international markets.

Yang Ruirong, Partner at Yuan Yi Capital, an investor in this round, stated that third-generation sequencing platforms have already demonstrated their unique advantages in the field of scientific research services and are poised to exert their distinctive appeal in clinical diagnostics. As a leading enterprise in China’s third-generation sequencing sector, GrandOmics possesses unique strengths in bioinformatics technology and maintains a clear understanding of clinical implementation.

“We look forward to better serving researchers, physicians, and patients in China and around the world in the near future,” he said.

Yu Zhiyun, Investment Director at Matrix Partners China, stated: “Over the past year and a half, GrandOmics has continued to lead the development of the third-generation gene sequencing industry through continuous technological innovation and forward-looking strategic layout.”

He revealed that during this period, GrandOmics Biosciences has seen a surge in orders, with breakthroughs achieved in both R&D and clinical services. “Matrix Partners China has also continued to increase its support,” he added.

The Changping Science and Technology Industry Fund of Funds is dedicated to investing in innovative projects that align with the industrial development of Changping District or lead emerging directions in industry growth. This investment represents a strategic early move by GrandOmics to position itself for the future development of the gene sequencing industry.

Wang Ying, General Manager of Beijing Changping Science and Technology Park Development Co., Ltd., stated, “We hope that GrandOmics aligns with Changping’s strategic positioning as a hub for the intensive development of high-end, cutting-edge industries. We look forward to collaborating with the company to jointly establish Changping as a leading center for the precision medicine industry.”

Li Yishi, Executive Director at GrandOmics Capital, believes that GrandOmics Biosciences is a global leader in third-generation sequencing and the first precision medicine company in China to center its core technology on this platform. By leveraging the strengths of multiple technological platforms, including PacBio, Nanopore, and BioNano, GrandOmics has established a first-mover advantage in scientific research and clinical translation within this field.

This round of financing will help the company maintain and expand its leading edge in product development and applications. Over the past two years, Joy Capital has served leading players in multiple niche markets, including oncology diagnostics, assisted reproduction, and third-generation sequencing. Going forward, it will continue to support high-quality enterprises in fields such as precision medicine and innovative drugs.