AI Legal Appraisal Startup Aims to Ease Small Business Risks
Molecular Matrix Technology launches “Contract guard” AI contract review platform
Contract guard, an AI-powered contract review service by Molecular Matrix Technology, has gone into public beta. The startup plans to raise 1 million RMB in a Pre-A funding round by selling 15 percent of the equity. The money will be used to not only develop the company’s core AI algorithms but also to create a closed-loop legal data system and B2B-market the company over the next 18 months.
Small and medium businesses are often worried about signing tailor-made contracts. Legal help in the traditional way is costly and takes a lot of time. Most people do not feel comfortable with the deals because they are not able to understand the custom clauses or find the hidden risks. The team believes that this “legal-trust gap” limits the number of startups and slows down the growth process.
Contract guard utilizes a model that is specifically trained to understand Chinese legal norms. It can analyze Word, PDF, and even scanned files to find the clauses that might be risky or the terms that are unclear. Moreover, it recognizes the role of each party, e.g., supplier or purchaser, and points out the issues from the correct perspective. After that, the system gives the practical options: changed clause drafts or risk alerts that assist users in making the decision of signing or renegotiating.
The company strategy is different from that of general-purpose AI tools. By merging legal domain-specific knowledge with lawyer-generated data and custom annotations, Contract guard does not only locate the red flags but also provides a way for solving them. That allows entrepreneurs to not just get the risk but to actually reduce it.
After China, Molecular Matrix first international target is Nigeria. The reason for that choice is a large young entrepreneurial base in Nigeria, high demand for cheap legal service, and the fact that Nigeria follows the Anglo-American common-law system. The firm plans to test its model in Nigeria and then move to other African markets.
The startup wants to build a huge user base through free AI-powered contract reviews in the next 1–2 years. The company is looking forward to launching a subscription-based SaaS product for law firms and corporate legal departments once it has enough data and verified results. Later on, it can provide high-value legal referrals and end-to-end services for contract risks.
In fact, this is what it really implies: Contract guard has the potential to democratize the access to legal safety measures, thus making the review of contracts no longer a luxury but a scalable and affordable service. For entrepreneurs all over the world, it might be instrumental in lowering the hesitation, unlocking deals, and building trust.
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