VC Funding Concentrates on Bio Ventures with Proven Technological Capabilities

SC Bio Raises 14 Billion Won in Funding
High Potential for Technology Transfer to Global Big Pharma
Trioor and Sovagen Also Secure Additional Capital

Amid a downturn in investment sentiment in the domestic biohealth market, venture capital (VC) funding is increasingly being concentrated on companies with strong technological capabilities.

According to the venture investment industry on September 1, new drug development company SC Bio recently succeeded in raising a total of 14 billion won through a Series B investment round. New investors in this round include Union Investment Partners, SL Investment, and Kolon Investment (each contributing 2 billion won), as well as Hyundai Technology Investment (1.5 billion won). IM Investment Partners and Korea Investment Accelerator (Korea Investment AC) also made follow-on investments of 2 billion won and 500 million won, respectively. Previously, SC Bio secured 6 billion won in its Pre-Series A round and 11 billion won in its Series A round, bringing its cumulative investment to 31 billion won.

The successful fundraising was driven by the potential for technology transfer to major global pharmaceutical companies (Big Pharma). SC Bio has attracted the attention of global Big Pharma for its idiopathic pulmonary fibrosis (IPF) treatment, as well as its immuno-oncology drugs for pancreatic cancer and non-small cell lung cancer. In particular, the IPF treatment is notable because there are few approved drugs due to the high level of difficulty in development, and SC Bio is currently preparing for Phase 1 clinical trials. If the company secures proof-of-concept (PoC) data in humans, the likelihood of technology transfer is expected to increase further.

The immuno-oncology drugs for pancreatic cancer and non-small cell lung cancer have also completed applications for Phase 1 clinical trial plans (IND) in Korea and are awaiting results. Discussions on technology transfer are ongoing based on the verification of efficacy and safety.

Founded in 2021, SC Bio is a new drug development company with multiple core technologies for immuno-oncology and targeted therapies. The company conducts most processes from candidate optimization to preclinical studies in-house, achieving high development efficiency. SC Bio CEO Lee Changhoon has over 20 years of experience in cancer immunology research and new drug development, with more than eight successful technology transfers. The company plans to use the new investment funds for clinical trials of its main pipeline, research and development (R&D) of follow-up pipelines, and global licensing negotiations.

Exterior view of SC Bio headquarters. SC Bio

A representative from Union Investment Partners stated, "SC Bio is developing highly marketable new drugs based on its research facilities and outstanding personnel, and its strong commercialization capabilities for related products were also key factors in our investment decision."

In addition to SC Bio, new drug development company Trioor attracted industry attention by raising 22.5 billion won in Series B funding on August 17. New investors included Woori Venture Partners, Shinhan Venture Investment, Hyundai Technology Investment, Regent Partners, and Sneak Peek Investment, while existing investors IMM Investment, LSK Investment, KB Investment, Kiwoom Investment, Shinhan Capital, and Jin & Partners also participated in follow-on investments. Trioor's cumulative investment now exceeds 41.5 billion won.

Founded in 2021, Trioor is developing its proprietary antibody platform 'TROCAD' and a new linker-toxin system 'TROSIG', and is actively collaborating with global Big Pharma and domestic and international companies on technology transfer discussions.

Sovagen, a company established in 2018 specializing in new drug development for intractable brain diseases, also recently secured an additional 23.3 billion won in funding, driven by expectations for technology transfer. Investors included Atinum Investment, Premier Partners, DSC Investment, CKD Investment, and Dongguk Investment. Sovagen's cumulative investment has reached 68.3 billion won. Atinum Investment has continued its support by investing 3 billion won in Series A, 1.5 billion won in Series B, and an additional 5 billion won in this latest round.

Sovagen's main epilepsy pipeline 'SVG105' is currently under technology transfer negotiations with a European pharmaceutical company, and 'SVG103' is also set to enter Phase 2 clinical trials.

An industry insider from the VC sector commented, "There is a trend of investment focusing on bio venture companies that either have a high potential for technology transfer or have a track record of such deals, raising expectations for future listings."

This content was produced with the assistance of AI translation services.