Trautec Completes RMB 200 Million Series B Fundraise Led by L Catterton

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Sep 28, 2023, 09:00 ET

Poised for further growth in the rapidly expanding global market for beauty and healthcare products featuring synthetic recombinant human collagen

CHANGZHOU, China, Sept. 28, 2023 /PRNewswire/ -- Trautec, a pioneer and market leader in China's synthetic recombinant human collagen ("SRHC") industry, today announced that it has completed a RMB 200 million ($27 million) Series B fundraise led by L Catterton, a leading global consumer-focused investment firm. 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, as well as medical dressings and aesthetic treatments.

The SRHC industry has been growing rapidly on the back of consumers' increasing preferences for beauty and healthcare products with functional benefits, as well as rising acceptance of synthetic proteins. Thanks to improving technologies, the production of SRHC is also more scalable and eco‑friendly compared to the harvesting of 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.

Led by a visionary founder, 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, and entered 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.

"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."

L Catterton has extensive experience building brands in the beauty and personal care space across the world. Current and past investments in the sector include Ci FLAVORS, ELEMIS, ETVOS, Function of Beauty, Intercos, The Honest Company, Maria Nila, MERIT, Nutrafol, Oddity (the parent company of Il Makiage), SUGAR Cosmetics, TULA, and many others.

About L Catterton

L Catterton is a market-leading consumer-focused investment firm, managing approximately $34 billion of equity capital across three multi-product platforms: private equity, credit, and real estate. Leveraging deep category insight, operational excellence, and a broad network of strategic relationships, L Catterton's team of more than 200 investment and operating professionals across 17 offices partners with management teams to drive differentiated value creation across its portfolio. Founded in 1989, the firm has made over 250 investments in some of the world's most iconic consumer brands. For more information about L Catterton, please visit www.lcatterton.com.

About Trautec

Jiangsu Trautec Medical Technology Co., Ltd. ("Trautec") is a synthetic bioscience and technology company focusing on the research and development, production, and sales of new biomaterials and innovative protein / nucleic acid drugs. Anchored in its vision of building an intelligent platform for synthetic biology, Trautec aims to create a healthier future by bringing technology closer to life.

Through its independent innovative research, Trautec has achieved two major technological breakthroughs – the construction of a stable genetic expression system for recombinant Type III collagen yeast and the development of 30-ton stable fermentation and purification technology. It has successfully achieved large-scale standardized production of Type I, II, III and XVII recombinant collagens as well, filling a global production capacity gap that had existed in the market for over 30 years. Trautec's research and production of Type XVII recombinant collagen has also delivered unprecedent breakthroughs in the development and commercialization of this unique collagen, which will facilitate the further creation of innovative medical devices in relation to regenerative materials.

Trautec was a key contributor to the YY/T1849 Recombinant Collagen (2022) industry standard and has submitted more than 60 patent applications related to its technology. It has already received approvals for more than 30 Class II medical devices using recombinant collagen and in 2022, it started running clinical stage trials for five Class III certificate projects that are expected to enter the project registration stage in the near future.

For more information about Trautec, please visit www.trautec.com.cn and www.trautec.us.

CONTACTS

L Catterton

Julie Hamilton (U.S.)
[email protected]
+1 203 742 5185

Bob Ong / Bonnie Gan (Asia)
[email protected] / [email protected]
+65 6672 7619 / +86 10 8555 1807

Trautec

Catherine Feng
[email protected]
+86 188 0612 3968

Julia Zhu
[email protected]
+86 138 1356 8326

SOURCE L Catterton