Trailhead Biosystems in Ohio Secures $40M to Expand iPSC Manufacturing

Trailhead Biosystems has expanded its funding round to reach $40 million. A $20 million investment led by MAK Capital doubled the Cleveland Clinic spinout’s previously reported total, expanding on a round the company first announced in May 2025.The firm plans to use these funds to ramp up production of its off-the-shelf, induced pluripotent stem cells (iPSC)-derived cell products, bolstering manufacturing infrastructure in Beachwood, Ohio, and supporting business growth initiatives in Cambridge, Massachusetts.

This boost in funding highlights a broader move toward New Approach Methodologies (NAMs) in toxicology and drug development, as innovation pushes into better, human-relevant models to replace animal testing and improve reproducibility. In the release, Trailhead positions its robotic, algorithm-controlled manufacturing systems as a solution to reproducibility issues in preclinical research.

In addition to funding, Trailhead has been growing its product lineup. Recent launches include TrailBio A9 Dopaminergic Neurons, aimed at Parkinson’s research, and TrailBio Hematopoietic Progenitor Cells, which reportedly show key hematopoietic markers and multilineage potential. 

In a previous announcement dated August 5, 2025, the company noted that the hematopoietic progenitor cells are derived from a single, well-characterized iPSC line and are intended for preclinical drug discovery, disease modeling, and toxicity testing.

Founded based on research from the Cleveland Clinic and Case Western Reserve University, with ties to the National Center for Regenerative Medicine, Trailhead keeps its R&D and manufacturing activities in Northeast Ohio. Meanwhile, it maintains a satellite office in Kendall Square for collaborations with biotech companies on the coast. Local and company sources see the recent funding as validation of Ohio’s entire life sciences ecosystem and a reason to scale manufacturing in Beachwood.

David Llewellyn, the company's CEO, said, "Our focus is on building high-quality products that researchers can trust and integrate into their workflows with confidence."