Shanghai Songli Biotechnology Completes Tens of Millions RMB Series D Financing to Advance Tissue-Inducing Biomaterials

Shanghai Songli Biotech Recently Completes Tens of Millions in Series D Financing, Co-led by Hualing Capital and Guijing Capital

According to VCBeat (WeChat official account: vcbeat), Songli Bio was founded in 2002 and is headquartered at the Low-Carbon Industrial Park in Xinzhuang Industrial Zone, Minhang District, Shanghai. Its product portfolio includes pharmaceuticals (biological products) and Class III medical devices (biomaterials). Leveraging next-generation technologies, Songli Bio has successfully developed a rapidly dissolving porcine blood-derived fibrin sealant with independent intellectual property rights (brand name: Chuangxufeng®), which can be widely used for surgical hemostasis and wound sealing.

Compared with the first-generation technology, the new-generation technology increases the concentration of fibrinogen, the main active ingredient, by two-thirds and reduces the dissolution time by 80%, thereby improving the film-forming and adhesive properties of the product. It also addresses the global challenge associated with first-generation fibrin sealants—namely, slow dissolution and prolonged preparation time—achieving rapid dissolution and providing a swift solution for surgeries requiring urgent hemostasis and wound sealing.

Meanwhile, supported by the National 863 Program, the Innovation Fund, and multiple government funds in Shanghai, the R&D team successfully developed a soft tissue-inductive biomaterial with tissue remodeling capabilities—superhydrophilic electrospun biocomposites. This smart material can be fabricated into various soft tissue substitutes (such as blood vessels, abdominal walls, Achilles tendons, and ligaments). Upon implantation, it undergoes degradation, absorption, and remodeling, ultimately regenerating into the body’s own tissue structures.

The surgical biological mesh (specifically for bladder and abdominal wall applications) made from this smart material passed the National Medical Products Administration’s “Special Approval Procedure for Innovative Medical Devices” in June 2015. Its first indication is as a mesh for inguinal hernia repair; clinical trials have been completed, and registration has been submitted, with market approval and sales imminent. This is currently the only product to have passed the National Medical Products Administration’s “Special Approval Procedure for Innovative Medical Devices” patch products.

Biomaterials capable of inducing tissue regeneration have become a key developmental direction, a research frontier, and the mainstay of future industries. “Tissue-inductive biomaterials” have broken through the traditional notion that non-living materials cannot induce the regeneration of living tissues and organs, making breakthrough contributions to the development of next-generation biomaterials and gaining international recognition.

As the lead investor in this funding round, Mr. Liu Tao, Chairman of Hualing Capital, has joined the Board of Directors of Songli Biotech. Mr. Liu stated that with rising living standards, absorbable and regenerable tissue-inductive biomaterials are improving patients’ quality of life and will gradually replace traditional synthetic materials for tissue repair. Songli Biotech’s platform technology for tissue-inductive biomaterials will fill market gaps across multiple fields, enabling more people to benefit from advances in biopharmaceutical technology in the future.

Hualing Capital is a private equity fund manager specializing in the life sciences sector, backed by a management team with extensive experience in domestic and international equity investment and capital operations. Hualing Capital manages multiple RMB and USD funds and maintains offices in Shanghai, Hong Kong, Wuhan, Qingdao, and other cities. The firm is actively seeking to collaborate with top-tier corporate management teams in China and globally, committed to providing comprehensive financial solutions that drive enterprises to become the most competitive industry leaders.

Guijing Capital was established in July 2015 as an investment management firm focused on the healthcare and wellness sector, with a team possessing extensive expertise in the medical industry. The firm currently manages two specialized healthcare investment funds and one dedicated healthcare services fund, with a total asset under management (AUM) of RMB 1.8 billion. Its major limited partners (LPs) include Huarong Asset Management, Great Wall Asset Management, Jingfeng Pharmaceutical, China State Development & Investment Corp., and Guizhou Industrial Investment Group.The firm invests in growth-stage enterprises focused on the healthcare sector, including medical devices, biopharmaceuticals, innovative diagnostic and therapeutic technologies, healthcare services, and mobile health. Guijing Capital is committed to providing efficient value-added services to its partners and portfolio companies, achieving investment returns while facilitating their rapid growth. By partnering with these enterprises for mutual development, the firm aims to contribute to the advancement of China’s healthcare industry.

Taifu Capital focuses on venture capital investments in the life sciences sector, primarily targeting high-potential early-stage and growth-stage companies. Through diversified and strategic positioning, as well as by selecting high-quality partners, Taifu Capital aims to seize opportunities amidst the rapid development of China’s life sciences industry. The investment team brings years of experience and extensive industry resources in these fields, and is committed to helping portfolio companies grow into industry leaders.

Dongpingheng Capital is a core enterprise of Nanjing Jiangning Technology Venture Capital Group. It manages 11 venture capital funds with a total scale of approximately RMB 5 billion, and 18 industrial funds with a total scale of approximately RMB 17 billion. Covering all stages from angel investment to VC and PE, it primarily invests in sectors such as TMT, biopharmaceuticals, high-end equipment, energy conservation and environmental protection, and new materials. The firm has invested in over 80 companies, mainly distributed across Nanjing, Shanghai, Suzhou, Hangzhou, Beijing, and other regions. Dongpingheng aims to accelerate the development of startup projects through capital services and value-added services.

Xieli Investment, established in 2011, is a venture capital firm with a nationwide presence across China. It has branches in Beijing, Shanghai, Nanjing, Suzhou, Changzhou, Wuxi, Zhenjiang, Nantong, Hangzhou, Ningbo, and other cities, and collaborates with renowned Silicon Valley venture capital firms to conduct overseas investments. Focusing on early- to mid-stage investments and adhering to the philosophy of value investing, the company has invested in nearly 20 portfolio companies in the biomedicine sector. Its key investment areas include new drug development, minimally invasive diagnosis and treatment, biomaterials, and specialized medical services.

Jiuzhou Venture Capital is a venture capital fund management firm specializing in early- to mid-stage investments. Jiuzhou Venture Capital manages six funds, with a total raised capital of RMB 2 billion. Eight portfolio companies backed by Jiuzhou’s funds have achieved initial public offerings (IPOs), including one listed on the New York Stock Exchange (NYSE) in the United States, four listed on the Shenzhen Stock Exchange, and three listed on the Shanghai Stock Exchange. Additionally, two invested companies realized fund exits through mergers and acquisitions by listed companies.

Since 2004, Jiuzhou has invested in enterprises across sectors such as new energy, new materials, biopharmaceuticals, energy conservation and environmental protection, modern manufacturing and high-end equipment, and TMT. Beyond providing capital, Jiuzhou also offers strategic consulting, financial management advisory, marketing management, team building, and assistance with accessing capital markets.