Aqiao Medical Completes Tens of Millions of RMB Pre-A Financing to Advance Digital Transformation in Osteoarticular Disease Treatment

In December 2021, Aiqiao Medical announced the completion of its Pre-A financing round, raising tens of millions of yuan. This round was jointly invested by Tengye Capital and Hongrun Venture Capital.

Aijiao Medical is an innovative medical device R&D and manufacturing enterprise focused on the digital transformation of bone and joint disease treatment, and is currently recognized as a National High-Tech Enterprise.

Joint arthroplasty is currently the primary treatment for end-stage osteoarticular diseases. Among various joint replacement procedures, total hip arthroplasty (THA) and total knee arthroplasty (TKA) are the most established, accounting for approximately 90% of all joint replacement surgeries. Statistics show that in 2020, the number of hip and knee arthroplasty procedures performed in China exceeded 800,000, with a significant upward trend observed annually.

Although hip and knee replacement surgical techniques are relatively mature,However, precise intraoperative localization for osteotomy and accurate prosthetic implantation remain major challenges, as surgical precision relies on the surgeon’s individual experience and subjective judgment., which significantly increases the incidence of postoperative complications and severely reduces patient satisfaction after surgery.

In response to these challenges, countries such as the United States, Europe, and Australia have clinically adopted precision-assisted therapeutic approaches, including computer navigation, surgical robots, 3D printing-assisted joint replacement technology, and smart sensor-guided surgery. In China, however, such surgical assistance equipment remains in its infancy. There is an urgent need to resolve the contradiction between surgeons’ pursuit of precision surgery and enhanced patient recovery, and the constraints imposed by outdated technologies and limited surgical accuracy.

AiQiao Medical’s independently designed and developed portable navigation and joint tension measurement spacer utilizes high-precision motion and pressure sensors to collect real-time data on relevant bony structures and surrounding soft tissue tension during surgery. The data is processed through proprietary algorithms, transmitted in real time, and displayed in the control software, thereby assisting surgeons with intraoperative decision-making, precisely determining osteotomy and implant placement positions, and enhancing surgical accuracy.

This technology features minimally invasive, precise, and intelligent capabilities. It not only significantly reduces surgeons’ reliance on experience and shortens the learning curve for junior doctors, but also effectively enhances surgical precision, increasing millimeter-level positioning accuracy to 97.4% and reducing the incidence of postoperative complications—outcomes unattainable with traditional joint replacement surgery.

Moreover, 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% currently to 92%. Additionally, 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.

Gao Wei, Partner at Tengye Venture Capital, stated:“In Western countries, it is common to see patients resuming physical activity after joint replacement surgery. As joint replacement procedures become more mature and widespread in China, restoring patients’ postoperative mobility has emerged as a new treatment goal. AiQiao Medical’s portable navigation system, though only pocket-sized and seemingly unassuming among image-guided navigation systems and orthopedic surgical robots, quickly captured physicians’ attention and became a preferred choice for many due to its user-friendly operation and superior navigation capabilities. Aligned with China’s specific healthcare context and policy directives emphasizing cost containment while ensuring quality under the national medical insurance scheme, AiQiao Medical’s cost-effective portable navigation system is poised to drive the next phase of development in joint replacement surgery. Furthermore, as substantial clinical data accumulate, it will play an increasingly important role in enhancing patients’ postoperative rehabilitation. Tengye is delighted to partner with AiQiao and looks forward to witnessing AiQiao Medical help more Chinese patients regain swift and confident mobility after surgery.”

Zuo Lin, Partner at Hongrun Venture Capital, stated:“From a market perspective, there is still a significant gap between the volume of hip and knee joint surgeries in China and that in mature foreign markets. Despite short-term fluctuations caused by policies such as centralized procurement, it is undeniable that the domestic orthopedic market still holds immense potential and development opportunities. From a clinical demand perspective, with the refinement of joint prosthesis design concepts and improved quality control of joint prostheses, surgeons’ pursuit of advanced surgical techniques has become a key driver of demand. Easy-to-use, precise, and intelligent intraoperative assistance tools have become important supportive means for preoperative planning and intraoperative execution. Aijiao currently has two products approved for market launch and sales, arriving at an opportune time, and possesses continuous R&D capabilities to meet future product innovation needs. We believe that Aijiao will rapidly expand and thrive in the orthopedic field, and we are honored to witness, accompany, and support Aijiao’s growth.”

AiQiao Medical has collaborated with clinical experts from numerous renowned Grade A tertiary hospitals across China to complete the development of multiple intraoperative guidance devices. All developed products possess independent intellectual property rights, with technological standards ranking among the international forefront. Notably, its Total Knee Arthroplasty Positioning System and Knee Soft Tissue Tension Meter have received market approval and are being clinically applied in Grade A tertiary hospitals in Beijing, Shanghai, Shandong, Guangdong, Henan, Shaanxi, and other regions, earning widespread acclaim from clinical experts.

Mr. Chang Tao, Founder and CEO of Aiqiao Medical, stated:“We are delighted to have completed this financing round as we enter 2022. The participation of Tengye Venture Capital and Hongrun Venture Capital provides stronger support and endorsement for the company’s development. The funds raised will be allocated to the construction of production facilities, research and development of new products, medical training and education, and team building. Aiqiao Medical looks forward to welcoming more like-minded professionals to join us in jointly advancing the chapter of digital orthopedic treatment.”

Tengye Capital focuses on early-stage investments in high-tech innovative enterprises. It manages seven funds and has invested in over 30 companies. Tengye Capital boasts a professional investment management team with deep industry expertise, dedicated to identifying outstanding teams and startups with core technologies and product accumulation in emerging industries, while leveraging extensive industry resources to support their growth. Its investment sectors include biopharmaceuticals and healthcare, TMT (Technology, Media, and Telecom), new energy and environmental protection, as well as advanced manufacturing and high-end equipment. Notable portfolio companies in the healthcare sector include Gan & Lee Pharmaceuticals, Liuhe Ningyuan, PackGene Biotech, Jiabao Renhe, Jinshi Bio, Yudao Bio, Ketu Medicine, Guangwei Pharma, Zhongjing Pukang, CytoNiche Biosciences, TrueMind Biotechnology, and Northland Biotechnologies.

As a member enterprise of Hongrun Health Group, Hongrun Venture Capital positions itself as an industry-empowering venture capital management firm. Leveraging the Group’s extensive industry experience and broad social resources in the healthcare sector, it focuses on identifying early-stage equity investment opportunities in innovative startups. By employing professional investment management models, providing full-industry-chain supporting services, and delivering empowerment throughout the entire lifecycle, it helps medical device innovators build a collaborative resource ecosystem for growth. Furthermore, by driving value appreciation from innovative patent commercialization to the regulatory approval of medical device products, it enables investors to achieve stable returns.