(Yicai) Sept. 18 -- Trautec Medical Technology, a recombinant human collagen technology startup, has secured CNY200 million (USD27.4 million) in its latest fundraiser.

The Series B financing round was headed by L Catterton's first Chinese yuan fund and CLSA Asset Management, the Changzhou-based developer of raw materials for cosmetics said on Sept. 16.

Trautec banked CNY200 million from a Series A fundraiser last July. That was by Shiseido's Beauty Innovations Fund, which the Tokyo-based company set up to support its expansion into the business of cosmetics raw materials. At nearly CNY100 million, it was the fund’s first investment, Shiseido said at the time.

China’s beauty and personal care market is growing fast, said Chen Yue, managing partner of US-based L Catterton, the world’s largest private equity firm focused on the consumer sector. 

“L Catterton looks forward to leveraging the investment experience and industry resources accumulated in the global beauty and personal care market over the past 30 years to help target companies build up business cooperation opportunities with international skincare brands and channels,” Chen said.

Collagen is another specialized skin care raw material that has been independently mastered by Chinese companies after hyaluronic acid, and it is much in favor with venture capitalists, industry insiders told Yicai. Two Chinese firms in the sector have listed on the stock market: Giant Biogene Holding and Shanxi Jinbo Bio-Pharmaceutical.

After the capital market success of the ‘three giants of hyaluronic acid’ -- Bloomage Biotech, Imeik Technology Development, and Shanghai Haohai Biological Technology -- investors are on the hunt for the next big opportunity, the insiders noted, adding that collagen developers are one such potential investment target.

China’s market for collagen products is worth CNY9.4 billion (USD1.3 billion) and is likely to balloon to CNY173.8 billion by 2027, with recombinant collagen products accounting for 62 percent, according to data from US consultants Frost & Sullivan.

Editor: Tang Shihua, Martin Kadiev