Trautec, a pioneer and market leader in China's synthetic recombinant human collagen (SRHC) industry, completed a RMB 200 million ($27 million) Series B fundraise led by L Catterton.

WHO: Founded in 2015, Jiangsu Trautec Medical Technology Co., Ltd. (Trautec) has gained material first-mover advantages in terms of technology, production, and partnerships. Significantly, it has patented multiple innovations and achieved large-scale production of high-quality Type I, II, III, and XVII SRHC with a low carbon footprint ahead of aspiring competitors in China, entering the US in 2022. It has also secured partnerships with more than 30 leading cosmetic and pharmaceutical companies, including international and local ones like Shiseido, Winona, Proya, Jala, and Sinopharm, and has several more in the pipeline.

The company's achievements stem from its twin focus on research and commercialization, with projects driven by an accomplished team with many years of collective experience in areas such as DNA sequencing, bioengineering, and medical technology. The team is supported by external consultants comprising academics and surgeons, and also collaborates with over 1,000 hospitals in China to conduct clinical trials and analyze data. These have resulted in scientific breakthroughs that it leverages for new product development and manufacturing in five production facilities across the country.

WHY: Trautec is poised for further growth in the rapidly expanding global market for beauty and healthcare products featuring synthetic recombinant human collagen. The successful fundraise positions Trautec to cement its pole position in the country and accelerate its international expansion amid the broadening use of SRHC in skincare products, medical dressings, and aesthetic treatments.

The SRHC industry has been snowballing on the back of consumers' increasing preferences for beauty and healthcare products with functional benefits and rising acceptance of synthetic proteins. Thanks to improving technologies, the production of SRHC is also more scalable and eco‑friendly than harvesting collagen from animals and plants. Propelled by these tailwinds, the market for products incorporating SRHC is expected to continue expanding at an annual rate of 34% in China and 30% globally over the coming years to reach RMB 82 billion ($11 billion) and $186 billion, respectively in 2028.

IN THEIR OWN WORDS: "Trautec aims to be a world-leading biotechnology platform for the intelligent and sustainable production of synthetic recombinant human collagen with an unwavering commitment to product safety and efficacy," commented Trautec founder Qian Song. "SRHC is gaining more and more traction in the cosmetics market and field of regenerative medicine, creating incredible scope for our solutions to be applied to many consumer products. We are thrilled that L Catterton has joined us on our journey as the firm's extensive experience, expertise, and network in the global beauty and personal care industry will enable us to embark on a new phase of exciting growth."

Scott Chen, a Managing Partner in the RMB fund of L Catterton, added, "Trautec has demonstrated that it is able to develop technologies that are at the forefront of the SRHC industry and also commercialize them for practical use in products that consumers value. Impressively, it has done so in a balanced and prudent manner, quintupling revenue and growing profit over the past two years even as it continued investing in research and development to stay ahead of the curve. We look forward to working closely with its management team, supporting the company's domestic and international expansion initiatives."

DETAILS: 

• Trautec completed an RMB 200 million ($27 million) Series B fundraise led by L Catterton.
• In August 2022, Shiseido Beauty Innovations Fund, established by Shiseido China subsidiary Shiseido China Co., Ltd., made its first investment, leading an RMB 100 million ($14.8 million) investment round with participation by Boyu Capital in Trautec.