Panlin News
2023/12/26
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Panlin Capital Announces Second Closing for its Healthcare Venture Capital Fund; Has Raised a Total of RMB 1.5 Billion in the Last Two Years

Recently, Panlin Capital announced that Hangzhou Panlin Xukang Fund, a venture capital fund focusing on innovative biopharmaceuticals, innovative medical device and biotechnology, has completed its second closing. This is the first fund that Panlin Capital has established in Hangzhou and the second VC fund that Panlin Capital has raised this year. In March this year, Panlin Capital announced the closing of its Chengdu Panlin Xiangxu Fund, which invested in the To B & tech sectors. In the past two years, Panlin Capital has raised over RMB 1.5 billion in total which is remarkable as the VC is going through a cold winter.

As one of the funds in which Panlin put a focus on healthcare investment, Panlin Xukang Fund was supported by a wide range of new institutional investors including Hangzhou Science and Technology Innovation Group and Hangzhou Xiaoshan International Venture Capital(Hangzhou industry guidance funds at municipal and district levels) , Chengdu Science and Technology Innovation Investment Group (a state-owned funder), listed companies such as HitGen(688222.SH), LEO Group (002131.SZ), I-Mab (IMAB.US), and market-oriented financial institutions Zhongyuan Trust (self-owned capital), and Chasestone Group etc. In addition, because of the trackrecord, the re-investment rate of Panlin's existing LP is over 40%. The fund has obtained strong support from Panlin's existing LPs as cornerstone investors represented by high-net-worth individuals and entrepreneurs.

At the same time, Panlin Xukang Fund also shows high investment efficiency. Up till now, the fund has completed the investment settlement of near 20 high-quality companies. Based on its previous research on the policy direction and industry cluster of Hangzhou, especially Xiaoshan District, Panlin has invested in a number of local companies: Codon, a DNA data storage technology development platform; Levinthal, a protein rational design company; TinkerBio, a  total solution provider focusing on R&D and manufacturing of microfluidic chips; DNano MetaBio, a biotechnology development company designing self-assembled nucleic acid nanocarriers; Leadbio, a small-caliber regenerative blood vessel R&D company; and Innoforce, a CDMO company specializing in cell and gene therapy. Also, Panlin has contributed to help companies move their headquarters to Hangzhou. In light of Xiaoshan District's plan to build a biopharmaceutical industry in the local airport industrial park,  Dushi Pharmaceutical Supply Chain,a cold-chain intelligent service platform has successfully settle its headquarter in Xiaoshan. As the lead investor of that platform, Panlin has helped the industrial park to make early preparations for the sales and transportation part of its biopharmaceutical industry chain.

In addition, Panlin Xukang Fund has invested in early- stage companies like Real & Best Biotech, a rAAV gene therapy drug R&D company. Also, considering the needs for quicker investment returns by LPs, Panlin has made additional investments in the subsequent financing rounds of pre-invested star companies, such as Ribo Life Science, a leading siRNA drug R&D company; GenFleet, a global novel drug developer; Virogin Biotech, a global oncolytic virus company; and Kingstron Bio, a high-end medical device R&D company committed to treating structural heart disease, etc.

The performance of the fund is tremendous, four companies, namely, Ribo Life Science, GenFleet, Virogin Biotech, and Virogin Biotech, will gradually enter into the IPO filing process, and near 10 companies have completed a new round of financing within one year after Panlin's investment, with the amount of financing exceeding RMB 1 billion.

Mr. Li Yuhui, Founding Managing Partner of Panlin Capital, said, "We are grateful for the long-term attention and trust of new and existing investors, which has enabled Panlin Capital to run forward in small steps despite the sluggish market environment. This not only demonstrates the solid recognition of Panlin's professionalism by the investors, but also shows the long-term confidence of Panlin in China's healthcare and biopharmaceutical industry. As an RMB fund focusing on technology innovation since its inception, Panlin Capital has gone through two full investment cycles and has forged a mature methodology for investing in early to mid-stage tech startups. In recent years, Panlin has entered a new phase of growth that is driven by a 'double-wheel engine' of healthcare and To B & tech, setting up multiple new funds in many cities. Currently, in the context of the country's full efforts to promote sci-tech innovation, we will continue to make breakthroughs with our established professionalism and track record. In this way, we will contribute to the country's sci-tech innovation with the strength of market-oriented VC, continue to deliver high returns to our investment institutions and investors, and actively support the development of sci-tech innovation at the local level."