On September 29, Geneus, a nanopore Gene sequencing company, announced to complete Series B round of financing of over RMB 100 million. This serious round of financing was led by China Growth Capital, and followed by Sequoia China, Sinopharm Capital, Rays Capital, Grand Mount Capital, Potential Growth Fund, Wedo Capital, and Darun Capital. Potential Capital served as the exclusive financial advisor. The funds will be used for R&D and commercialization of the nanopore gene sequencer.

 

       Geneus is devoted to making gene sequencing a conventional means of precision medicine. The nanopore sequencer based on the technical route of “sequencing while synthesizing” solves the pain points of high gene sequencing cost, low efficiency and poor data quality, and can realize the goal of human whole genome sequencing within several hours at the price of RMB several hundred. It is expected to promote the wide application of nanopore sequencers in clinical practice.

 

       Geneus has completed Angel round of financing exclusively invested by Co-win Ventures and Series A round of financing led by Wedo Capital.

 

       As the application scenarios of nanopore sequencing become more and more clear, the imagination space also gets bigger and bigger, and the attention of capitals and the industry to this field is increasing. Recently, Oxford Nanopore has been applied for marketing, and the industry has become more popular. Geneus has broken through the main technical obstacles, and has completely the independent intellectual property right of nanopore sequencers. Besides, the Company has mastered the super-large-scale integration technology of chips, and the cost is quite competitive. Under such circumstance, investors naturally favor nanopore sequencing companies represented by Geneus.

                                                                                                                        - said Wu Yunpeng, CEO of Geneus

 

       B I O T I A N F U

       Low cost, high efficiency and high data quality

       are the premises for rapid development of gene sequencing.

       —

       According to the data of BBC RESEARCH, the global market scale of gene sequencing showed a trend of continuous growth from 2010 to 2019, with the growth rate of over 10%. The global market scale of gene sequencing was about USD 12.6 billion in 2019. Su Yunpeng said that, “After large-scale clinical application of gene sequencing, the market capacity is expected to exceed $USD 600 billion.”

 

       The second generation sequencing (NGS) technology represented by Illumina is the mainstream of gene sequencing market. From 2006 to 2015, the cost of NGS detection dropped at the rate beyond Moore's Law. The cost of human whole genome sequencing fell from USD 10 million to USD 1,000.

 

 

       Clinical application is very sensitive to the price of gene sequencing. It is generally believed that, large-scale clinical application can be promoted only when the cost falls to USD 100. But, the cost of NGS technology has decreased slowly since 2015, only from USD 1,000 to about USD 500. There is still no clear technical route on how to further reduce the cost to USD 100.

                                                                                                                                                                              - said Su Yunpeng

 

       In addition, short sequencing length causes that NGS covers only about 85% of the human genome. However, more and more evidences prove that the remaining 15% (especially the structural variation and other areas) is more closely related to the occurrence and development of diseases. The ability of NGS to interpret structural variation and other regions is limited, restricting the application of gene sequencing in precision medicine.

 

       The low efficiency is another pain point of NGS technology. It will take about 3 days for NGS from sampling to report issuing. Except NGS, the emerging gene sequencing technologies such as single-molecule fluorescence and nanopore sequencing provide promising solutions to the problems of high cost, low efficiency and low data quality.

 

       The technical route of “single-molecule sequencing while synthesizing” is used for single-molecule fluorescence, and it has the advantages of high data quality and long sequencing length. But, the detection cost is about 6 times of that of Illumina's NGS technology.

 

       Nanopore sequencing represented by Oxford Nanopore adopts the route of “direct sequencing”, with long sequencing length, and the cost is lower than that of single-molecule fluorescence. But, the data quality defect brings about great obstacles to large-scale clinical application, and super-large-scale integration is also limited by technical principles.

 

       In general, NGS, single-molecule fluorescence and nanopore sequencing technologies have both advantages and disadvantages, but they still fail to meet high requirements of clinical application for gene sequencing technology.

 

       Cost, efficiency and data quality are premises for the rapid development of gene sequencing and precision medicine industry. Is there a "perfect" sequencing technology with low cost, high efficiency and high data quality? The original intention of Geneus is to aim at the pain points of gene sequencing and break through the defects of sequencing technology in cost, efficiency and data quality based on the nanopore sequencer.

 

       B I O T I A N F U

       Innovate in the route of "sequencing while synthesizing"

       Accelerate the implementation of nanopore sequencing in clinical application

       —

       The founding team of Geneus consists of schoolmates and friends. The Chief Scientific Officer Dr. Zou Yaozhong was once Senior Chief Scientist of Roche Nanopore Sequencing Department, who has made significant contributions to improving the performance of the nanopore sequencer to the commercial level. The CEO Dr. Su Yunpeng once served as a senior manager of Global 500 and completed multiple national R&D projects. The Chip Director Jiang Ke led the design of dozens of commercial chips.

 

       CEO of Geneus Su Yunpeng

 

       As introduced by Su Yunpeng, Geneus has made a series of innovations in the biochemical system, semiconductor chip and MEMS chip, and formed core technical barriers in the nanopore sequencing field.

 

       Of them, the biochemical system is the core of nanopore sequencing. The biochemical system developed by Geneus can eliminate spurious signals in the sequencing process, improve the upper limit of the accuracy rate of single sequencing, increase the consensus accuracy to 99.99% and break through the restriction that current nanopore sequencing technology cannot provide sufficient sequencing accuracy for clinical application.

 

       The semiconductor chip is the backbone, determining the cost and efficiency of nanopore sequencing. The semiconductor chip independently developed by the Company has realized extremely low cell area and power consumption while ensuring high precision and high sampling rate.

 

       MEMS chip is a platform for nanopore proteins and other biochemical components to play a role, and micron is achieved through the supercapacitor electrode that supports the biochemical system to play a role and collects signals. Combined with semiconductor chips with very low cell area, more than 1 million of sequencing units can be integrated per square centimeter so that one chip has over ten million of sequencing paths, ensuring low cost and high efficiency of sequencing.

 

       Based on innovations in the biochemical system, semiconductor chip and MEMS chip, Geneus has constructed a technical route of “sequencing while synthesizing” with an independent intellectual property right, showing a promising prospect in terms of core requirements such as significantly reducing the sequencing cost, improving data quality and enhancing sequencing efficiency.

 

       Compared with other technical routes of sequencing, the technical route of “sequencing while synthesizing” has the advantages of low cost, high data quality and high efficiency, and it is expected to reduce the cost of human whole genome sequencing from USD 1,000 to less than RMB 1,000, and complete human whole genome sequencing within several hours that would be finished in several days previously. In addition, the data quality can meet the requirements of extensive clinical application.

 

       At present, Geneus has completed R&D of the engineering prototype of nanopore sequencer. Next, Geneus will focus on the non-clinical market and launch a medium-flux nanopore sequencer with 500,000 paths. Later, the Compny will launch a super-high flux nanopore sequencer with 10,000,000 paths, fully enter the clinical market and realize the Company’s vision of making gene sequencing a routine means of precision medicine and improving human health Level.

 

       B I O T I A N F U

       Investors' opinions

       —

       Lu Hanjie, Partner of China Growth Capital, said that,

       China Growth Capital is very optimistic about the accumulation of Geneus in the fields of nanopore sequencer biochemistry, system, chip, patent and intellectual property right, expecting the future development space of low-cost domestic sequencers with long sequencing length. Meanwhile, it hopes that nanopore sequencing can continuously make underlying contributions to individual-based therapy, genomics and multi-omics, early disease screening and monitoring, and help the medical industry and other industries explore more unknown applications.

       Dr. Chen Xuanze from Sequoia China said that,

       Restricted by the defects of short sequencing length and the complexity of library setup, the application space of NGS is limited to some extent, and a new sequencing method is required to further release the market opportunity. In the future, low-cost and small high-throughput sequencing technology with long sequencing length is one of the trends. The technical path of Geneus has significant distinction degree and potential technology leadership. The Company is expected to further solve existing pain points of nanopore sequencing such as low accuracy, low flux and high unit cost through some unique methodologies for modifying enzymes and nanopores, and to further expand the existing market.

       Zou Min, Partner of Sinopharm Capital, expressed that,

       Genomics is a discipline that traces human origin, and its downstream applications have been developing rapidly in recent years. Genenus has realized breakthroughs in upstream sequencing equipment, and the new generation of nanopore sequencing technology developed by Geneus breaks through the application limitation of the traditional sequencing technology in scientific research and clinic. We expect that the team can achieve greater achievements in the commercialization phase.

       Dr. Xin Xiaoxiong, Partner of Rays Capital said that,

       As the upstream of the industry chain, the equipment end is always the "apple of the eye" of the gene detection industry and market. Under the leadership of the founding team, Geneus has achieved breakthroughs and independent control of the underlying technologies. In the future, it will strive to form “China chip” for high-end sequencing equipment and provide faster, more accurate and more economical solutions to scientific research and clinical scenarios.

       Zhang Shnshan, President of Grand Mount Capital, said that,

       R&D and development of sequencers are the development direction of high-end precise instruments under the background of “the 14th Five-Year Plan”, and have very high technical barriers. It's one of our focuses. As a leading enterprise of nanopore gene sequencing, Geneus has strong independent R&D ability. Based on interdisciplinary technology accumulation of the team, the Company has achieved significant results in various aspects of nanopore sequencing solutions, and can realize the advantages of low cost, long sequencing length, high flux and convenience. It develops the pain point market that the past sequencing technology can not cover. We are very glad that we can develop together with Geneus and join hands to create value through industry enabling.

       Zhang Junqi, Partner of Potential Capital, said that,

       With the technological iteration of nanopore sequencing, the unique advantage of long NDA sequencing becomes increasingly prominent in clinic. The core team of Geneus has iterated and innovated the core technology of nanopore sequencing. We expect to build a world-leading domestic nanopore sequencing platform with independent intellectual property right.

       Kang Hui, Partner of Wedo Capital, said that,

       In the fast-growing gene sequencing industry, the development of upstream sequencer will bring the expansion and innovation of more sequencing techniques and application scenarios. Geneus is one of the few high-tech companies in China that focuses on upstream nanopore sequencers, supporting reagents, and application development for clinical applications, and has independent intellectual property rights. We are so happy that China Growth Capital and Sequoia China join us to promote the development of gene sequencing industry. We believe that under the leadership of the founding team, Geneus can become a leading enterprise in the field.Zhang

       Zhongxiao, Partner of Darun Capital, said that,

       With the success in the R&D of low-cost and high-throughput gene sequencing technology and its access to the market on a large scale, Geneus will rapidly promote the development of precision medicine, ultimately benefit patients, help them save medical costs, and also bring ideal returns for investors.

 

       About China Growth Capital

       China Growth Capital, founded in 2006, focuses on early investments in enterprise software, advanced technology, life science, and consumer upgrading, and utilizes the profound resources and experience to help enterprises for strategic planning, business development and team building. Currently, RMB fund and USD fund managed by China Growth Capital total RMB 8 billion. The scope of investments covers from Angle round to Series C round, and the investment amounts range from millions to hundreds of millions. The representative investment projects include: SMZDM (GEM: 300785), Missfresh (NASDAQ: MF), WISH (NASDAQ: WISH), Tongdun, Tiger Brokers (NASDAQ: TIGR), EZBUY (NASDAQ: LITB), BeyondHost (acquisition by Meituan HKEX: 03690), Caicloud (acquisition by ByteDance), Xiaoman Technology (acquisition by Alibaba NYSE: BABA), PINGCAP, DEEPHi (acquisition by Xilinx NASDAQ: XLNX), AIRLANGO (acquisition by Meituan HKEX: 03690), NREAL, Aibee, LANDSPACE, SINOVATION, Singleron, 4B Technologies, ABMTX, and InxMed.

 

       About Sequoia China

       Sequoia Capital is a great company which is always devoted to helping entrepreneurs grow and brings rich global resources and valuable historical experience for member enterprises. Over the past 49 years, Sequoia Capital has invested in numerous innovative companies and industry trend leaders. Sequoia China as “the entrepreneur behind the entrepreneurs” concentrates on the investment opportunities in TMT, healthcare, and consumer goods/services. Over the past 16 years, Sequoia China has invested in nearly 600 companies with distinctive technology characteristics, innovative business models, high growth potential and high development potential.

 

       About Sinopharm Capital

       Founded in 2012, Sinopharm Capital management Co., Ltd. is an equity investment institution focusing on the medical and health field, which is set up jointly by China National Pharmaceutical Group Co., Ltd. (Sinopharm) and its management team. At present, its fund management scale has exceeded RMB 6 billion. The management team is built in accordance with the market-based mechanism, and it is one of the earliest investment institutions focusing on medical and health investment in China.

 

       About Rays Capital

       Rays Capital focuses on incubating and supporting innovative and entrepreneurial projects in the medical and health field. Medical funds initiated and managed by Rays Capital are oriented to early venture capital, focus on the medical industry and invest in very potential medical device, biotechnology, original new drug R&D and medical & health enterprises.

 

       About Grand Mount Capital

       Grand Mount Capital (GMC) is a dedicated healthcare venture capital firm established by state-owned capital and investment professionals in 2019. GMC's investment spans biopharmaceuticals, medical devices, and diagnostics. Adhering to the strategy of “Industry participation + capital assistance", GMC works closely with multiple healthcare conglomerates to add value to portfolio companies by providing active support in market access, collaborations, regulatory guidance, etc. GMC aims to deliver long-term and sustainable return for investors while becoming a trusted partner to entrepreneurs that aim to build great companies with breakthrough technologies.

 

       About Wedo Capital

       As a young and dynamic venture capital firm, Wedo Capital focuses on early investments in medical and health field. Wedo Capital pays close attention to cross-border applications of cutting-edge biotechnology and artificial intelligence technology in the medical field, and pursues more accurate, efficient and intelligent diagnosis and treatment methods brought by new technologies, as well as mode innovation driven by new technologies. The team of Wedo Capital has rich industry experience and medical resources, accompanies portfolio companies to grow, enable firms in each stage and devotes itself to helping entrepreneurs "get from here to there."

 

       About Darun Capital

       Founded in 2014, Darun Capital mainly depends on alumni resources of Huazhong University of Science and Technology to set up an investment and financing platform for the transformation of high-tech industries. Darun Capital is devoted to value creation and focuses on early investments in science and technology enterprises, with the investment fields including semiconductors, healthcare, new materials, and Internet. Adhering to the “fewer but better” investment strategy, Darun Capital implements the business philosophy of "enhancing the value of equity investment by industrial management".

 

       About Potential Growth Fund and Potential Capital

       Potential Capital, attached to Potential Holding Group, is a boutique investment banking service part of the Group. It has provided services for dozens of top enterprises, including Hygea, TargetingOne, THOTH, Huxiu Information Technology, Leyan Technologies, iandcode, 36Kr Jingdata. Besides, Potential Capital has obtained billions of financing from domestic and foreign well-known funds, and the investors include China Reform, Hillhouse Capital, YF Capital, China Growth Capital, BioTrack Capital, Lilly Asia Ventures (LAV), and Oriza Holdings.

 

       Potential Growth Fund, attached to Potential Holding Group, has invested in ByteDance, Hygea, THOTH and 36Kr Jingdata. It is a primary market private equity fund under Potential Holding Group.

 

       Potential Holding Group is committed to becoming a leading research-based holding group. The company business covers boutique investment banking service·Potential Capital, primary equity investment · Potential Growth Fund, secondary equity investment · Hongzhou Capital, research service · Potential Research Institute, entity and incubation industry · Potential Industry. The Company is positioned as a comprehensive service platform behind China's most respected business leaders.

 

Source: vcbeat