Editor’s note: PAM2L Biotechnologies is one of the finalists of Fund At First Pitch at BEYOND Expo 2024.
PAM2L Biotechnologies, a Shenzhen-based synbio company focusing on biomaterial innovation and application, plans to raise a new round of financing as it aims to transform the synthetic biology sector, its executive said.
“We are currently raising a new round of financing,” Senior Director of Business Development Daniel Tan (a.k.a Shibo Tan) told TNGlobal in a recent interview.
“Our goal is to attract more investors and partners to join us together to transform the synthetic biology from the future’s industry to mature and established sector, together, we aim to advance our capabilities and fulfill the mission of the company and also the industry,” he said.
Founded by Dr. Chao Zhong, from Shenzhen Institutes of Advanced Technology, Chinese Academy of Sciences, with leading biomaterial innovation team in 2021. PAM2L focuses on the development of synthetic biology and machine learning (BT-IT) dual-driven biomaterials and products. The company mainly focuses on the development of protein and polysaccharide raw materials, which are widely applied in the fields of pharmaceuticals, medical aesthetics, cosmetics, and food.
In January last year, PAM2L announced the completion of over 100 million yuan ($14.09 million) in Pre-Series A financing. The round was led by VOWON Fund, Yunqi Partners, and GRC Sinogreen Fund, with participation from Yael Capital and Lighthouse Capital serving as the exclusive financial advisor. Existing shareholder CoStone Capital also participated, according to a statement.
Meanwhile, Tan also shared about the challenges the company faced, navigating in the so-called “future” industry.
“In this space, there is no established playbook: no clear business models, no predefined strategies for startups, and no guaranteed path to making a meaningful impact,” Tan said.
“The key challenge behind is that how we can transform this industry from a visionary concept into a mature, established sector that delivers real value,” he said.
McKinsey once forecasted that around 60 percent of the world’s physical inputs to the global economy could, in principle, be produced biologically, and could have a direct economic impact up to $4 trillion a year over in the last 10 to 20 years, he noted.
In the interview, Tan also shared the vision and mission of PAM2L, the challenges the company met and its latest plans, among others.
Below are the edited excerpts:
Can you share the reason why PAM2L Biotechnologies was founded? What is the company’s vision and mission?
Nature offers an abundance of resources and tantalizing examples of biology’s magical properties, including what we eat, wear, use and live. However, traditional methods of getting these physical inputs, such as extraction from plants and animals or chemical synthesis, often cannot meet human demand and are unsustainable.
Our mission is to address these challenges by leveraging synthetic biology, which is to engineer microorganisms as factories to create new biomaterials with enhanced functionality, cost-effectiveness, and sustainability, ultimately improving the quality of human life without sacrificing the benefits of our planet.
For example, our star molecule mussel adhesive protein, which is originally from mussels, has very strong repairing and anti-inflammatory benefits. However, in the past, we can only get this protein by extracting from mussels, so only one gram of pure protein can be extracted from millions of mussels, which is very scarce and limit its applications.
We produce this protein through our engineered strain and fermentation. The amount of proteins produced per liter of fermentation broth is equivalent to that obtained from millions of mussels, and we increased the supply tremendously, reduced the cost and provides a sustainable alternative.
By developing materials that offer superior functionality, safety, and sustainability, we aim to meet market demands in a way that enhances human life without compromising the planet’s future. That is the reason why we started the company.
Since its inception, has this company undergone any changes from the initial vision? How do you view and accept these changes?
We have remained very true to our initial vision. That is, we want to use synthetic biology to solve the problems that humankind is facing right now, though, is very challenging, and we have constantly adhered to our core mission without any changes.
What do you think was the most difficult period for PAM2L? How did the company overcome this difficult time?
The most challenging period for us has been navigating the uncharted waters of synthetic biology—a truly emergent field we often refer to as the ‘industry of the future.’
In this space, there is no established playbook: no clear business models, no predefined strategies for startups, and no guaranteed path to making a meaningful impact.
The key challenge behind is that how we can transform this industry from a visionary concept into a mature, established sector that delivers real value.
McKinsey once forecasted that around 60 percent of the world’s physical inputs to the global economy could, in principle, be produced biologically, and could have a direct economic impact up to $4 trillion a year over in the last 10 to 20 years.
How do we get there? As a startup, and we are the technology enabler of this industry, our biggest question has been: what should our positioning be? Should we handle everything ourselves, from research and development (R&D) to production, marketing, branding and sales? Or should we collaborate with industry partners and integrate into the value chain?
It’s like deciding whether to run a marathon solo or join a relay race with many participants. That’s the biggest challenge but also an incredible opportunity.
The good thing is that we are continuously evolving as a startup, and we are heading to the right direction now.
I’d also like to express our gratitude to the BEYOND Expo platform for bringing together so much technology and innovation. We’ve had the opportunity to learn from many inspiring conversations and connections, which have strengthened our confidence in sticking to our mission. With this momentum, we are more committed than ever to delivering on the promise of this industry.
You mentioned about BEYOND Expo. We understand PAM2L participated at BEYOND Expo’s Fund At First Pitch event. You were one of the finalists at the finale, which part of the session or which questions from the judges impressed you the most?
It was a very excellent experience for us. We are lucky to get to the finals and do the presentation to all the judges. among other questions, we think that the toughest questions is “how do you differ from other companies.” That’s kind of the toughest question for any startup.
Originally, I plan to have our products available for these investors to experience before the pitch. However, I decided to hold off and show them after the presentations. I felt that there would be a perfect timing to showcase our products.
So the first question from one of the judges was – How do you differ from other companies?
It was a perfect opportunity to highlight our strengths. In synthetic biology, this “future industry”, we are one of the very few companies globally, that really turning technology into high-value products, and achieved technology visibility, which means the product itself was our best answers.
I seized the moment to show our product and shared our journey on stage. This “show and tell” approach allowed the judges to see and experience the tangible results of our technology.
We believe this will be the best answer, and we think they were very satisfied with our performance.
In the next development phase, what are your plans moving forward? What are your expectations for the company?
Participating in the BEYOND Expo event has greatly accelerated our momentum.
We are currently raising a new round of financing. We are in the “final pitch” stage of guessing evaluations, the real version.
So our goal is to attract more investors and partners to join us together to transform the synthetic biology from the futures industry to mature and established sector, together, we aim to advance our capabilities and fulfill the mission of the company and also the industry.
I want to thank BEYOND Expo again. And because we attended this event, we realized there is a tremendous potential. We have been part of a crucial part of the Greater Bay Area, as we come from Shenzhen, and we feel that there is a strong synergy with Hong Kong and Macau.
And together, we can contribute the world’s largest and most influential bay area which is the key strategic hub and primary connection point to the world.
We look forward to also more opportunities and collaborations with Hong Kong and Macau to further enhance our collective impact.
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