The European Investment Bank (EIB) has committed €30 million in venture debt financing to TreeFrog Therapeutics, a French biotechnology company developing regenerative cell therapies for Parkinson's disease and other serious medical conditions. The financing represents a significant investment in addressing one of the world's most pressing neurodegenerative disorders.
Innovative Financing Structure
The €30 million financing package is structured in three tranches of €10 million each, utilizing a novel EIB vehicle that incorporates dilutive financing. Under this arrangement, TreeFrog will not be required to make principal repayments for the initial two tranches, with venture debt financing the final tranche. The deal benefits from a guarantee under the European Commission's InvestEU programme, with the initial €10 million tranche due to be taken up before the end of June 2025.
Addressing Critical Medical Need
TreeFrog's lead program targets Parkinson's disease, which represents a significant unmet medical need. According to the EIB, Parkinson's disease is the second most common neurodegenerative disorder and the fastest growing, affecting more than 10 million people globally. The prevalence of the disease has doubled in the last 25 years and is expected to double again before 2050. Current treatments only address symptoms rather than seeking to slow or halt the disease progression itself.
"Regenerative medicine is a field that has growing importance as life expectancy rises and some diseases are still untreated. The EIB is keen to support young, dynamic European and French companies that focus on research, development and product innovation," said Ambroise Fayolle, EIB vice president.
Proprietary Technology Platform
The Bordeaux-based company has developed C-Stem, a proprietary technology platform that combines microfluidics and stem cell biology to mimic the natural environment for cells. The technology places cells in protective capsules that allow them to self-organize and grow naturally. These protected cells are then nourished to expand exponentially and can be transformed into any type of cell in large-scale bioreactors without damage and stress.
TreeFrog was founded in 2018 by biophysicist Kévin Alessandri and stem cell biologist Maxime Feyeux, having been incubated by the University of Bordeaux. Since 2021, the company has raised $82 million (€72.6 million) to advance its pipeline of stem cell-based therapies.
Clinical Timeline and Strategic Focus
The company's Parkinson's disease program is on track to carry out its first in-human trial in 2027. Jaime Arango, TreeFrog's chief finance officer, stated that the EIB support would enable the firm to "bring our Parkinson's cell therapy to the clinic, while also reinforcing our internal pipeline of cell therapies in other disease areas."
Beyond Parkinson's disease, the financing will support research into other conditions with significant unmet needs, including liver, heart, lung, pancreas and brain diseases. TreeFrog operates a dual business model, developing its own therapeutic programs while also partnering with other biotech and industry organizations.
The company's investor base includes French government investment bank Bpifrance, US-based private equity firm LGP, global pharmaceuticals firm Bristol Myers Squibb, and Paris-based venture capital firm XAnge, demonstrating strong institutional confidence in the company's regenerative medicine approach.
