TMTPOST -- Aiyu Intelligent Technology, a fast-rising Chinese AI legal services startup, has completed both its Angel and Pre-A funding rounds, marking a significant step in the expansion of artificial intelligence across the country’s legal industry.
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The angel round was solely backed by Future Capital, while the Pre-A round saw participation from SunStone Capital, Haitang Fund, Renai Group, and Sky Capital, with Future Capital increasing its investment. Encore Capital acted as the exclusive financial advisor for both transactions.
According to people familiar with the matter, the funds raised will primarily support continued R&D and the scaling of Aiyu’s proprietary “Execution × Experience” dual flywheel self-optimizing architecture — a technical framework designed to enhance the adaptability and intelligence of its AI legal agents across diverse application scenarios.
The fundraising comes amid a global AI boom in vertical applications. In 2025, as AI agents rapidly gain traction, the market for intelligent applications is expanding across industries. The legal sector, long considered resistant to automation, is now emerging as a key battleground.
Internationally, AI-driven legal companies such as Harvey, backed by OpenAI and valued at $5 billion, and Salient, a YC-backed AI credit services firm with $14 million in annual revenue, have proven the commercial potential of AI in complex professional services. Chinese investors are now following suit, betting on domestic startups to redefine the future of legal work.
Founded in June 2024, Aiyu Intelligent Technology positions itself as a global builder of legal AI agents that can reconstruct complex, high-value business processes. The company’s founding team brings together alumni from Fudan University and Tsinghua University, as well as professionals with experience at Tencent, Alibaba, ByteDance, Microsoft, and Sina. Several members are also serial entrepreneurs, combining expertise across AI, internet technologies, and user experience design.
“A tremendous amount of the legal industry revolves around document-heavy, process-driven collaboration,” said Zhang Tianle, founder and CEO of Aiyu Intelligent Technology. “These are areas where large language models can deliver transformative efficiency and accuracy. Traditional legal services are fragmented, costly, and labor-intensive — precisely where AI can make the greatest impact.”
Zhang said Aiyu follows a “results-oriented” strategy, emphasizing real business outcomes instead of selling standalone software licenses. For enterprise clients, the company uses outcome-based pricing, charging fees only when measurable results are achieved. “Clients want problems solved — not more tools to learn,” Zhang added.
The company’s first large-scale deployment focuses on small-loan litigation for financial institutions — a domain characterized by high case volume and low individual value, making it difficult for traditional law firms to manage profitably.
Aiyu’s AI legal agents automate the entire workflow: online filing, case tracking, repayment scheduling, and enforcement monitoring. Its pay-for-results pricing aligns directly with repayment outcomes.
So far, Aiyu has signed contracts with over 60 financial institutions, processing tens of thousands of cases per month. The company says its efficiency now surpasses that of conventional law firms. Upholding its “AI for Good” mission, Aiyu’s system also helps borrowers by suggesting longer or more flexible repayment options, improving both user experience and dispute resolution efficiency.
At the heart of Aiyu’s innovation lies its dual-flywheel system — “Task Execution × Experience Accumulation.” The model operates as two reinforcing engines: one executes large-scale, automated legal tasks; the other continuously learns from those tasks, integrating real-world experience into a structured knowledge base.
“We are building a ‘super brain’ for the legal industry,” Zhang explained. “Every resolved case and mediation adds to a growing knowledge graph, which allows the system to self-optimize and adapt to new legal scenarios.” The company plans to publish technical papers outlining its approach and is open to collaborating with researchers to accelerate knowledge sharing across the industry.
Leveraging its success in personal lending disputes, Aiyu Intelligent Technology is now expanding into intellectual property protection — a fast-growing and under-served market in China’s digital economy. Its IP platform connects the entire chain from monitoring and evidence preservation to liability pursuit, mediation, and enforcement.
The system’s multimodal AI agents perform real-time content scanning across platforms, including live-streaming sites, to detect infringements of brand logos, images, or audio content. Once potential violations are identified, the AI automatically preserves digital evidence, clusters similar cases, and drafts legal documents such as demand letters or mediation proposals.
This automated process dramatically reduces the cost and time required for IP enforcement — providing small creators and online merchants with affordable access to legal remedies. Zhang noted that Aiyu’s approach also emphasizes mediation and compliance to achieve “balanced and amicable” dispute resolutions, embodying its principle of “AI for Good.”
Investors say Aiyu’s integrated approach sets it apart from other AI startups in China. “Aiyu is one of the few companies deeply specialized in both AI and legal application scenarios,” said Xia Ling, Partner at MingShi Ventures. “Unlike Western counterparts that charge per-seat subscriptions, Aiyu charges based on performance, transforming both workflows and cost structures. In essence, it’s building an AI law firm, not just a legal tech tool.”
Luo Huiqing, Partner at ShangShi Capital, echoed that sentiment, saying: “Aiyu demonstrates what it means to be AI-native — using machine intelligence to reconstruct complex service processes from task planning to verified outcomes. We believe it represents the new direction for legal AI in China.”
Zhang Hanqin, Partner at Sky Capital, added that Aiyu’s “Execution × Experience” dual-flywheel framework “unlocks value spaces previously unreachable before the large-model era” and praised its performance-based payment model for making AI directly accountable for real-world results.
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