Aqiao Medical Secures Tens of Millions of RMB in Series A Funding to Advance Orthopedic Digital Innovation and Market Expansion

VCBeat has learned that Aijiao Medical, a digital innovative medical device company, recently completed tens of millions of yuan in Series A financing. This round was jointly invested by Yuanyi Capital and the Suzhou Industrial Park Science and Technology Innovation Fund. The funds will be primarily used for product research and development, as well as marketing and sales promotion. Additionally, VCBeat understands that the company’s digital hip joint products are currently undergoing clinical trials and are expected to receive regulatory approval for market launch this year. The company is also poised to initiate its next round of financing.

In the field of orthopedics, digitalization is driving transformations in diagnosis and treatment processes through various technological forms, including decision-making planning, surgical procedures, and doctor-patient communication. Both physicians and patients have begun to tangibly perceive the benefits brought by the clinical application of diverse digital technologies. Substantial data indicate that digital systems can deliver superior clinical outcomes compared to freehand techniques.

Aiqiao Medical is a national high-tech enterprise dedicated to providing integrated solutions comprising "digital surgical systems + intelligent decision support + joint cloud service platforms." It focuses on the research, development, and production of innovative medical devices for the digital treatment of bone and joint diseases, driving the digital transformation of joint surgery.

Osteoarthritis, the most prevalent orthopedic condition, sees a significant rise in prevalence with advancing age; joint replacement serves as the primary treatment modality for patients in the end stages of the disease. Currently, China’s joint replacement market boasts substantial size and immense potential. However, due to the involvement of intricate anatomical structures, joint surgery is technically demanding, and outcomes are highly dependent on surgeon experience. Over the past five years, the growth rate of revision joint replacement surgeries in China has exceeded 30%, with such procedures now accounting for 10% of all joint replacements, thereby imposing a heavy burden on the national medical insurance system.

In recent years, a surge of capital and entrepreneurs has flooded into the field of digital orthopedics, driving the rise of a cohort of innovative medical device companies. These enterprises specialize in areas such as orthopedic surgical robots, wearable devices, portable intelligent assistance systems, computer-assisted technologies, and digital health solutions. While these digital products have enhanced the quality of bone and joint surgeries, they have also introduced substantial costs.

Portable intelligent assistance systems, which do not require expensive large-scale equipment and are easy to operate, can assist surgeons in completing procedures with low cost and high efficiency. They represent the optimal solution under current national policies and clinical demands, yet this sector remains virtually untapped in China. Currently, Aiqiao Medical holds a Class III medical device registration certificate for its “Total Knee Arthroplasty Positioning System” and a Class II medical device registration certificate for its “Knee Joint Soft Tissue Tension Meter,” with several other products undergoing clinical registration. The company has taken the lead in achieving industrialization of these related products. What exactly has this company done right?

Since its inception, Aiqiao Medical has established its core objectives—“precision, minimally invasive techniques, and intelligence”—based on insights into the clinical pain points in the treatment of orthopedic diseases. The company aims to facilitate the transition of joint surgery from “experience-based procedures” to “precision surgery,” ensuring accurate and stable implementation of joint replacement operations while achieving cost-effectiveness and efficiency throughout the surgical process. Since its establishment, the company has achieved breakthroughs in core technologies, integrated the industrial chain, localized component manufacturing, and optimized processes, which are key reasons for gaining recognition from investors and the market.

Clinical experts stated: “iJoint Medical’s team has launched an intraoperative digital joint surgery assistance solution based on MEMS sensor technology. This solution supports real-time intraoperative measurements and decision-making without relying on preoperative imaging planning. Taking total knee arthroplasty (TKA) as an example, the product enables intraoperative localization of the virtual mechanical axis of the lower limb and assesses soft-tissue balance in knee flexion and extension gaps. Compared with traditional surgery, it offers minimal invasiveness, high precision, compatibility with surgeons’ existing workflows, and ease of learning and use. In contrast to robotic systems and optical navigation, the product is free from line-of-sight occlusion issues, features a shorter learning curve and operative time, and is cost-effective and user-friendly.”

Currently, iJoy Medical’s independently designed and developed Total Knee Arthroplasty Positioning System (IKPAS) and Knee Soft Tissue Balance Measurement Device (IKBAS) utilize high-precision motion and pressure sensors to real-time acquire data on relevant bony structures and surrounding soft tissue tension during surgery. Processed through proprietary algorithms, this data is transmitted and displayed in real time on the control software, assisting surgeons in making intraoperative decisions, accurately determining osteotomy planes and implant positioning, thereby enhancing surgical precision.

Total Knee Arthroplasty Positioning System (IKPAS)

Knee Joint Soft Tissue Tension Meter (IKBAS)

This technique features minimal invasiveness, high precision, low cost, and independence from large-scale equipment during treatment, significantly improving postoperative outcomes. Patient satisfaction has increased from less than 70% with traditional surgery to 92%. Furthermore, as it does not require hospitals to procure additional large-scale equipment, this technology is more conducive to widespread adoption in primary care hospitals, effectively enhancing the level of surgical expertise within the region.

Since the advent of digital orthopedics, portable intelligent assistance systems have been held in high regard. The technological approach adopted by Aiqiao Medical has been validated and recognized in over 300,000 cases worldwide (including OrthAlign’s products). Its open-platform design is user-friendly, efficient, and compact. The journey of innovative medical devices from research and development to market launch is characterized by long cycles and high entry barriers. Aiqiao Medical’s recent acquisition of tens of millions in financing underscores the confidence of investors and the market in the company’s future growth.

Tang Yinan, Managing Director at Yuan Yi Capital, stated: As the population ages, the volume of joint replacement surgeries continues to grow rapidly, indicating immense market potential. Within this sector, digital joint replacement surgery represents a blue-ocean market experiencing rapid growth; with current penetration in China remaining below 1%, it presents a billion-level incremental opportunity. The Aiqiao Medical team serves as an industry pioneer and trailblazer. Through years of in-depth collaboration with leading clinical experts, the company has developed a digital surgical system based on intelligent sensor technology, demonstrating highly scarce cross-disciplinary innovation capabilities at the intersection of medicine and engineering. The company’s products address core clinical pain points and offer significant health economic advantages, earning high recognition from numerous clinical experts and channel partners. Amidst a highly challenging industry landscape, commercialization continues to accelerate. Yuanyi Capital is optimistic about the company’s strategic direction of deepening its focus on the digitalization of joint surgery, anchored by its IKBAS and IKPAS product lines. Through continuous technological and product innovation, the company aims to realize its vision of simplifying and standardizing complex procedures, thereby continuously enhancing the quality and accessibility of joint surgery treatments.

Tao Shanshan, Head of Investment Department I at Lingjun Venture Capital, stated: Since its inception, Aiqiao Medical has strategically established a product pipeline featuring fully independent intellectual property rights for joint surgery planning systems and tension measurement devices. Its MEMS sensor-based assistive technology for joint surgery is also independently developed and protected by proprietary intellectual property. Leading Ventures holds strong confidence in Aiqiao Medical’s products and entrepreneurial team. Furthermore, this collaboration further strengthens the medical device industry ecosystem in Suzhou Industrial Park and enhances regional innovation capabilities.

Yuan Yi Capital, established in 2016, is an early-stage venture capital fund focused on the digital health technology sector. The cumulative assets under management of its multiple RMB and USD funds exceed the equivalent of RMB 3 billion. The limited partners of Yuan Yi Capital include national-level government guidance funds, state-owned asset operation platforms, market-oriented funds of funds, insurance companies, listed companies, as well as renowned overseas funds of funds, strategic investors, and family offices.

Yuan Yi Capital focuses on investment opportunities in the early and growth stages of digital health, making forward-looking investments in three key infrastructure areas: efficient access, innovative payment models, and efficiency enhancement. This strategy aims to facilitate the transformation and upgrading of healthcare infrastructure in China and globally, driving cost reduction, efficiency improvement, quality enhancement, and cost control. Yuan Yi Capital has invested in over 50 companies across various sectors, including medical devices and equipment with core technologies and innovative business models, mobile health and services, precision diagnostics, and health insurance technology. Notable portfolio companies include Shukun Technology, a leader in AI-powered medical imaging; Medxin Health, a pioneer in innovative health insurance; and Bedeng Medical, a platform specializing in medical devices and consumables. Other high-quality innovative enterprises in the digital health space include Xunshi Technology, Lennor Medical, RayBiotech, Hope Genomics, Weimai Medical, Baozhunniu, Benchmark Medical, HuLianWang, Mingyi Zhonghe, Zhisuan Technology, and Shangyong Technology.

Leading Venture Capital was established in December 2012 as a wholly-owned subsidiary of the Enterprise Development Service Center of Suzhou Industrial Park, with a registered capital of RMB 367.5 million. Its managed funds include the SIP Sci-Tech Innovation Fund and the Leading Yuanrui Fintech Fund, among others, bringing its total assets under management to RMB 2 billion. As the largest policy-oriented angel investment institution in Suzhou Industrial Park, it has played an active role in supporting the park’s efforts to attract high-end talent, accelerate corporate growth, and foster a robust ecosystem for technological innovation.

The Suzhou Industrial Park Science and Technology Innovation Fund was jointly established by the Finance and Audit Bureau of Suzhou Industrial Park as the Limited Partner (LP) and Lingjun Venture Capital as the General Partner (GP). The first phase of the fund has a total size of RMB 1.5 billion, focusing on key areas of strategic emerging industries such as biomedicine, nanotechnology applications, and artificial intelligence. By adopting a combination of direct investment and grant-linked investment, the fund supports technology-based and innovative enterprises within the park to scale up, enhance quality, and strengthen competitiveness.