Shenzhen Venture Capital leads $28m Series B round in China’s Hrain Biotech

Hrain Biotechnology, a Chinese company that specializes in the research and development of tumour immunotherapy technologies, has secured 200 million yuan ($27.97 million) in a Series B round of financing led by Chinese state-backed venture capital firm Shenzhen Venture Capital, it announced on Monday.

A group of investors including Chinese private equity firm Xiamen Junyida Capital Management, Shenzhen-based Qianhaiyu Investment, and a healthcare fund jointly launched by Yangming Capital and the local government in southeastern China’s Fujian province, also poured money into the new round.

Hrain Biotechnology, founded in 2015 and based in Shanghai, focuses on the research, development and application of tumour immunotherapy technologies, advanced precision treatment solutions, and the transformation of foreign tumour immunotherapy technologies.

The company specializes in CAR-T technology, a type of immunotherapy that genetically engineers T cells to recognize and destroy cancers while promoting other technologies like CAR-NK, new DC vaccines, and iNKT.

The company has several CAR-T clinical trials registered on ClinicalTrials.gov, an authoritative platform for exchanges of clinical experience in America, and multiple clinical centres located in Chinese cities including Beijing, Chongqing, Jiangsu and Zhejiang. Its clinical trials can be carried out in the US, Europe and the Middle East. The company is building an 11,000-sqm biomedical centre in Shanghai Zhangjiang Hi-Tech Park.

Proceeds will be used to finance the clinical trials and commercialization of its CAR-T technologies. The company also indicated that the new funding will “lay a solid foundation” for its initial public offering (IPO) in the future.

Hrain Biotechnology completed a Series A round from investors including Shenzhen Venture Capital in July 2018. Financial details of the previous round were not disclosed.

The lead investor, Shenzhen Venture Capital, was founded in 1999 by the local government in Shenzhen. With about 348.964 billion yuan ($48.81 billion) in total assets under management (AUM), Shenzhen Venture Capital has invested about 45.8 billion yuan ($6.40 billion) in 1,028 companies as of the end of August 2019.

Its portfolio companies include Tencent Music-owned music streaming business KuGou, live streaming website Douyu TV, Shenzhen-based medical instrumentation developer Mindray Medical, and advanced flexible displays manufacturer Royole Corporation.