SCHEDULE: TCG Crossover Funds Report 11.4% Stake in Surrozen

TCG Crossover Funds and Chen Yu disclose significant passive ownership in Surrozen, Inc., with Chen Yu holding an aggregate 11.4% stake.

Summary

• TCG Crossover GP II, LLC, TCG Crossover Fund II, L.P., TCG Crossover GP III, LLC, TCG Crossover Fund III, L.P., and Chen Yu (collectively, the Reporting Persons) have filed a Schedule 13G for Surrozen, Inc.
• TCG Crossover Fund II, L.P. and TCG Crossover Fund III, L.P. each beneficially own 637,005 shares of Common Stock, representing 5.7% of the class.
• Chen Yu, as the sole managing member of the general partners for both TCG Crossover II and TCG Crossover III, is deemed to beneficially own an aggregate of 1,274,010 shares, representing 11.4% of Surrozen, Inc.'s Common Stock.
• The ownership percentages are based on 11,191,978 shares of Common Stock outstanding as of January 27, 2026.
• The Reporting Persons certify that the securities were not acquired and are not held for the purpose of changing or influencing the control of Surrozen, Inc.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as significant institutional ownership by a reputable fund like TCG Crossover can be interpreted as a vote of confidence in Surrozen's potential, even if the investment is passive.

Positives

• Increased institutional ownership by TCG Crossover Funds signals confidence in Surrozen, Inc.'s long-term prospects.
• The investment is stated to be passive, indicating no immediate intent to influence or change company control.

Risks

• The filing does not explicitly mention specific risks, but the nature of a passive investment means the Reporting Persons do not intend to actively mitigate company-specific risks through direct intervention.

Future Outlook

The filing does not provide forward-looking statements or guidance from Surrozen, Inc. or the Reporting Persons regarding future financial performance or strategic direction.

Industry Context

StockSavvy.ai notes that the disclosure of a significant passive stake by TCG Crossover Funds, a venture capital firm, suggests continued institutional interest in the biotechnology sector, particularly in companies like Surrozen, Inc. This type of investment often signals confidence in the long-term potential of the underlying science or market opportunity.

Comparison to Industry Standards

• A 5% or greater beneficial ownership stake is a significant threshold, often triggering reporting requirements and indicating substantial institutional confidence. For example, similar filings are seen when major biotech investors like Flagship Pioneering or ARCH Venture Partners take significant positions in emerging biopharmaceutical companies, signaling belief in their platform or pipeline.
• The aggregate 11.4% stake held by Chen Yu, through the TCG Crossover entities, places him as a notable passive investor, comparable to the early-stage institutional backing seen in companies like Moderna (MRNA) or BioNTech (BNTX) during their growth phases, where venture capital funds maintained substantial, albeit passive, positions.

Stakeholder Impact

• Shareholders may view the increased institutional ownership as a positive signal, potentially enhancing market confidence and liquidity.
• Employees, customers, suppliers, and creditors are unlikely to be directly impacted by this passive ownership disclosure.

Key Dates

Recommendation

The disclosure of a significant passive stake by TCG Crossover Funds and Chen Yu indicates institutional confidence in Surrozen, Inc. While this is a positive signal, a Schedule 13G filing alone does not provide sufficient fundamental or operational details to warrant an immediate 'buy' or 'sell' recommendation. Investors should 'hold' and integrate this information with a broader analysis of Surrozen's financial performance, pipeline, and market position.

Keywords

Surrozen Inc, SRZN, TCG Crossover, Chen Yu, Beneficial Ownership, Institutional Investment, Schedule 13G, Common Stock, Biotechnology Investment