QSTEM, a Korean biotech startup tackling hair loss with human induced pluripotent stem cell (hiPSC) technology, has closed a $1.5 million (2.2 billion won) seed round. Futureplay led the investment, joined by Mashup Ventures, Hallym University Technology Holdings, and AI Angel Club.

Founded by Kiwon Ban, a professor at Hong Kong Metropolitan University, QSTEM is building technology to grow dermal papilla cells from hiPSC and harvest the growth factors these cells produce.

Dermal papilla cells sit at the base of hair follicles in tiny quantities—just 2,000 to 3,000 cells per follicle. But their role is outsized: they regulate hair growth cycles and release growth factors that signal to surrounding cells. Research suggests that as these cells age and produce fewer growth factors, hair loss can follow. That’s the problem QSTEM is trying to solve.

The company is scaling up production of its dermal papilla cell cultures while running safety tests. QSTEM plans to launch functional cosmetics first, then expand from there. For now, it’ll work with contract manufacturers before potentially building its own facilities down the line.

“QSTEM is bringing stem cell science to hair loss—we want to offer solutions backed by real research,” said CEO Kiwon Ban. “This funding lets us sharpen the technology and move toward market.”

Yoonmo Sung, a principal at Futureplay, pointed to QSTEM’s combination of differentiation technology and execution. “They’re not just developing the science—they’re already lining up raw materials, building manufacturing processes, and preparing for commercialization,” he said.

The fresh capital will go toward refining QSTEM’s ingredient platform, running joint tests with manufacturers at home and abroad, and building out a product line for the hair loss market.