China’s BrainCo bets on wearable brain tech
Brain-computer interfaces, an emerging technology, establish a direct connection between human minds and devices.
BrainCo
Elon Musk’s Neuralink, which uses implants in people’s heads to compensate for disabilities, has become the poster child for so-called brain-computer interfaces (BCI). But some companies are betting that mass-market neural technology won’t require opening the skull at all.
BCI works by processing brain signals and converting them into commands, allowing external devices to be controlled by thought.
Funding for startups in this space is a tiny fraction of the capital flowing into AI. But as companies hit milestones like enabling people with degenerative conditions such as amyotrophic lateral sclerosis (ALS) to type or play video games using brain signals, interest in the emerging field is growing.
Artificial intelligence is a catalyst that increases signal processing capabilities. Some in the industry envision one day taking a step further: using the mind to control or connect with artificial intelligence and robots.
Technology increases the risk in US-China competition. The Chinese government included BCI as a strategic “industry of the future” in its recent Five-Year Plan. Regulators recently approved what authorities are calling the world’s first minimally invasive BCI device for commercial use, developed by Neuracle Medical Technology to regain some hand function after spinal cord injuries.
From Sam Altman-backed Merge Laboratories to China’s Gestala, the non-invasive field is gaining momentum, while companies like China’s StairMed and NeuroXess are making headway with implants; both use ultrasound-based approaches.
BrainCo, one of the so-called “six little dragons” of tech startups in the eastern city of Hangzhou, produces prosthetics and wearable devices using BCI technology.
Today’s proven BCI applications can significantly improve the quality of life of severely disabled patients, but the much larger market likely lies in enhancing human capabilities, said Rui Ma, founder of media and research platform Tech Buzz China.
But he added: “I don’t think anyone has come even remotely close to realizing this… Augmentation is like science fiction at this point.”
A roadmap for brain technology
Founded in 2015 and born out of Harvard Innovation Labs, BrainCo has planted its flag on the non-invasive side.
BrainCo partner and senior vice president Nyx He told CNBC in a recent interview that implantable and noninvasive approaches are different paths to different problems. Some conditions can be treated by simply entering the brain, he said, but BrainCo believes many other conditions, especially those for which medications are inadequate, can be treated non-invasively with lower risk and cost that are easier for people to accept and access.
The company’s bionic hands, approved by the US Food and Drug Administration, read the amputee’s neural and muscular electrical signals and convert the intended movements into finger movements. Its wearable devices include a sleep aid that BrainCo says uses low-intensity electrical pulses to stimulate neurochemicals associated with stress relief.
BrainCo has raised 2 billion yuan ($280 million) in a funding round co-led by IDG Capital and Walden International, a venture firm founded by Intel CEO Lip-Bu Tan.
BrainCo’s bionic hands process brain signals and translate intended movements into commands.
CNBC
According to He, the main challenge of non-invasive methods is to obtain and decode brain signals that are subtle and noisy when read from outside the skull. BrainCo developed a dry electrode sensor to capture the signals and an AI algorithm to decode them.
He outlined the company’s roadmap in stages: Start with those who need the technology most, such as amputees in insurance coverage markets; It may extend to medical conditions such as ADHD and depression; then target the mass market with consumer electronics.
Eventually, BrainCo plans to license its BCI platform to other companies that produce brain technology products; a business that the company expects to be the company’s largest source of revenue.
The initiative’s plan reflects emerging thinking at the national level. In a commentary in state media this week, a Chinese Academy of Sciences researcher specializing in non-invasive BCI laid out a similar trajectory: from near-term medical applications to uses in autonomous driving and smart manufacturing, and eventually to mass marketing of consumer products.
Science fiction excitement into commercial reality
Investors are divided on the best technological approach. But most agree that the real test is whether companies can produce products that offer clear improvements and that consumers will pay for.
Some claim that only implants can give birth. “Non-invasively, it’s like trying to capture light from distant galaxies,” said Alex Zhavoronkov, CEO of biotechnology firm Insilico Medicine.
Others think emerging implant-free techniques are promising. Thomas Tsao, co-founder of Gobi Partners, a venture capital firm that has invested in Gestala, said ultrasound-based approaches offer a more holistic view of the brain without the risk of surgery.
Tsao said growing investment could help the industry reach an inflection point, but added that end market size is nearly impossible to measure and many future use cases are hard to imagine today.
Invasive implants and ultrasound-based methods represent the “most promising” frontiers, Jefferies said in a July 8 report, noting that traditional noninvasive systems remain limited by how clearly they can capture and interpret brain signals. But the bank added that BrainCo’s proprietary sensors, AI decoding algorithm and track record of commercialization give the company an advantage.
Industry players say the best approach depends on the use case: targeting patients or consumers, used briefly or continuously, recording or stimulating brain activity targeting surface or deep brain regions, and how much load users are willing to bear.
Silicon Valley and China’s playbook
If American neurotechnology is funded by billionaires, China’s has the backing of the central government.
Seven ministries in Beijing jointly issued an implementation plan for the BCI industry in August last year, targeting major technological breakthroughs by 2027. In June, the Anhui provincial government released an action plan to accelerate BCI development across research, production and industrialization.
Tech Buzz China’s Ma said some start-ups in China are turning to selling equipment or consumer-grade products under pressure from state-linked or risk-averse backers to show revenue, while U.S. investors are opting for “bets that will change the world.”
For now, China’s BCI market holds the top spot for non-invasive rehabilitation technologies that face fewer regulatory and clinical hurdles, Jefferies said.
“China has now incorporated BCI into its industrial policy apparatus,” said Paul Triolo, consulting partner at DGA-Albright Stonebridge Group. “Beijing is thinking about the entire supply chain, not just a single breakthrough technology.”
Founded in 2015, BrainCo produces prosthetics and wearable devices using BCI technology and research.
CNBC
He said the country’s focus is broader, from stroke rehabilitation to prosthetics to cognitive assessment.
This coordination extends to hospitals and universities. Shanghai has expanded access to patients and neurosurgeons by pairing BCI initiatives with Huashan Hospital. China’s health authorities created a separate insurance category for BCI last year, and experts say it could help popularize the technology.
Like AI and semiconductors before it, BCI could become a geopolitical flashpoint as it matures (with its sensitivities around private personal data and privacy). Performance-enhancing uses also raise ethical issues.
BrainCo’s said the company does not collect customer data, which is stored on users’ devices, not transferred to the cloud, and deleted after each use. Information such as concentration scores can also be recorded locally on focus training devices, he said.
He put politics aside when asked about the tensions between the world’s two technology powers.
He said the company’s goal is to provide solutions to those in need, whether in China or the U.S. “I don’t think I’m going to stop at the border for that.”
