Cambridge-based biotech company bit.bio has raised $25M in a Series D round, ten months after securing its previous investment.
The company announced the new funding on Wednesday, with backing from existing investor M&G Investments and Dr Jonathan Milner, founder and former chief executive of research tools company Abcam.
bit.bio did not disclose a lead investor or its valuation. The round follows a $50m Series C in January, led by M&G’s Crossover team.
A spin-out from the University of Cambridge, bit.bio develops human cells for use in laboratory research. Its opti-ox platform converts stem cells into specific cell types, producing consistent batches at scale.
The company’s ioCells range now includes more than 50 types of cells, among them heart, liver and nerve cells.
Researchers use these cells to study diseases, identify potential drugs and test their safety. The technology could also help reduce reliance on animal testing by giving scientists access to models that more closely reflect human biology.
The company says demand for its products has continued to grow this year. Paid vial volumes are up 76%, orders have increased by 34%, and its active customer base has expanded by 40%. The number of academic customers alone has risen by 63%.
With manufacturing capacity already in place, bit.bio plans to use the new funding to bring more cell types to market and expand its customer base, rather than invest in additional production infrastructure.
The company appointed Dr Emma Pepperell as chief executive in June, after she previously led its commercial team. Moreover, Dr Emma Pepperell linked the growth in demand to changes in drug discovery and the search for alternatives to animal testing.
“AI is changing the speed at which new medicines can be discovered, while the move towards animal testing alternatives is creating growing demand for models that better reflect human biology,” she said in a statement.
Milner, who spent years building Abcam into a global research tools business, sees a similar opportunity for bit.bio.
“Abcam showed how a focused product offering can grow into a global business by becoming indispensable to researchers,” he said.