What Took Me So Long?
Welcome back! You’re probably wondering why it took me a couple of months to publish the latest blog post. In April, I decided to join a scout program with a fund, with the intention of expanding my founder network and becoming more involved in generalist deal flow. What I learned very quickly was that being a part of this firm meant that my blog posts and opinions could also be interpreted as those of the firm that I was scouting for. I always do my best to ensure the data and information that I blog about is accurate, but any mistake or misrepresentation by myself through my blog could reflect poorly on the firm. So I decided to take a break from the blog. I should have sent something notifying everyone what was happening, so I apologize for going dark for a bit. However, I recently decided to step away from the scout program I was a part of and focus more on NeuroTech. So the good news is you can look forward to more blog posts from me. I also learned that weekly content might not be the best cadence, so these posts will be more like bi-weekly.
Also, a big announcement I made recently on my LinkedIn – I’ve joined NeuroNYC to help build NYC into the NeuroTech hub of the world. NeuroNYC is a fast-growing nonprofit organization. We connect pioneering companies, such as OpenBCI, Synchron, and Precision Neuroscience, with world-class research institutions and strategic investors. Our mission is to nurture a collaborative ecosystem where scientific advances in neurotechnology can develop into practical applications that improve people’s lives. My involvement with NeuroNYC is growing and there will be more on that very soon. Looking forward to keeping you all updated!
Now – onto the blog post where we’ll be wrapping up January 2025 – August 2025 in NeuroTech.
The Billion-Dollar Brain Race
The Unicorns Leading the Charge ($100M+)
Neuralink just dropped the mic with a $650 million Series E, bringing their valuation to a staggering $9 billion. Led by ARK Invest, Sequoia, and other heavyweight VCs, this round isn’t just about the money – it’s about scaling human trials across the U.S., Canada, and UAE. They now have five patients controlling digital devices with pure thought, doing everything from playing chess to browsing the internet.
But Neuralink isn’t alone in the big leagues. Neurona Therapeutics secured $102 million in April for their epilepsy cell therapy (think biological brain repair, not just computer interfaces), while Precision Neuroscience raised $102 million. The message is clear: if you want to play in brain-computer interfaces, you’d better bring capital.
What This Means: VCs are betting that BCIs will be as transformative as smartphones. For startups, the bar for entry just got higher – but so did the potential returns.
The Rising Stars Finding Their Niche ($10-50M)
The really interesting action is happening one tier down. Subsense emerged from stealth with $17 million to develop non-surgical brain interfaces using nanoparticles – imagine getting BCI capabilities through an injection rather than brain surgery. It’s like the difference between invasive heart surgery and taking a pill.
Meanwhile, OpenAI’s venture arm is reportedly investing in Merge Labs, seeking $250 million at an $850 million valuation. When the company behind ChatGPT starts buying into brain-computer interfaces, you know AI and neurotechnology are about to collide in spectacular fashion.
What This Means: The sweet spot is non-invasive solutions. Investors want the BCI upside without the surgical risks.
Why China’s BCI Push Changes Everything
The Global Race Just Got Real
In March 2025, China launched its first invasive BCI clinical trial, making it only the second country after the U.S. to reach this milestone. But here’s the kicker: by July, China released comprehensive national policies targeting “two to three globally influential leading companies” by 2030. This is a technological arms race with national security implications.
Paradromics secured a strategic investment from Saudi Arabia’s NEOM Investment Fund, establishing a Brain-Computer Interface Center of Excellence in the desert. Suddenly, NeuroTech isn’t just a Silicon Valley or NYC story – it’s a global power play where countries are picking sides and placing bets.
What This Means: For startups, you need to think about which markets you can realistically enter and which geopolitical relationships matter.
The Regulatory Green Light
FDA Approvals Are Accelerating Everything
The regulatory landscape underwent a significant shift in 2025. Precision Neuroscience achieved FDA 510(k) clearance for 30-day clinical use of their brain interface (previous approvals were limited to hours). Neurotech Pharmaceuticals got FDA approval for ENCELTO, the first treatment for a rare eye condition using encapsulated cell technology – essentially tiny biological factories implanted in the eye.
But here’s what really matters: these approvals are creating regulatory pathways for everyone else. The FDA is establishing precedents, and European regulators are watching closely. We’re moving from “will regulators allow this?” to “how fast can we get through the approval process?”
What This Means: Companies with clear regulatory strategies could now have a competitive advantage. The Wild West phase is ending, and compliance costs are becoming table stakes.
The Reality Check: What Didn’t Work
Not Everything Is Unicorns and Rainbows
While VCs were writing nine-figure checks, retail investors got a harsh wake-up call. The Tema Neuroscience and Mental Health ETF liquidated in August 2025, suggesting that broad-based NeuroTech investing isn’t ready for mainstream retail. The market is clearly distinguishing between companies with proven human trials versus those still figuring out the science.
This consolidation is actually healthy – it means institutional money is flowing to real companies with real products, not just cool-sounding concepts. The NeuroTech bubble fears of 2023-2024 are giving way to rational valuations based on actual milestones.
What This Means: Due diligence is getting more sophisticated. Investors want to see human trial data, regulatory pathways, and clear paths to revenue – not just impressive lab results.
The Smart Money Is Betting On…
Three Trends That Will Define 2026
Non-Invasive Technologies: Companies like Subsense (nanoparticle BCIs) and Theta Neurotech (wearable EEG patches) are attracting serious funding because they solve the “brain surgery problem.” Investors love the idea of BCI capabilities without having to go into the skull.
AI Integration: The OpenAI investment signals that the future isn’t just brain-computer interfaces – it’s brain-computer-AI interfaces. Imagine your thoughts being processed by GPT-6 in real-time. The companies that nail this integration will dominate the next decade.
Therapeutic Applications: Beyond cool tech demos, investors want medical applications that insurance will pay for. Epilepsy treatment, depression therapy, pain management – these aren’t just products, they’re prescription medicines with billion-dollar markets.
Action Plan
For VCs: Where to Place Your Bets
- Look for regulatory moats: Companies with FDA pathways have 2-3 year head starts
- International expansion matters: The China/US competition creates opportunities in neutral markets
- Focus on non-invasive approaches: Lower risk, higher scalability, faster adoption
For Startups: How to Stand Out
- Show human data early: Lab results don’t cut it anymore – investors want to see real people using your technology
- Pick your regulatory strategy: FDA, CE mark, or international-first? Each path requires different resources
- Think beyond the technology: What problem are you solving that people will pay $10,000+ to fix?
For Everyone Else: Why This Matters
We’re witnessing the birth of an entirely new category of human-computer interaction. The companies being funded today will determine whether brain-computer interfaces become as ubiquitous as smartphones or remain niche medical devices. Either way, the $2+ billion invested in 2025 suggests the smart money believes we’re about to upgrade humanity itself.
The Bottom Line
2025 wasn’t just a good year for NeuroTech funding – it was the year the industry grew up. We moved from “can we build it?” to “how do we scale it safely and profitably?” The companies that balance technological ambition with regulatory pragmatism and clear market paths will own the next decade.
The brain-computer revolution is here. The only question is: are you ready to think your way to the future?
The convergence of record funding, regulatory approvals, and international competition positions 2025 as the inflection point where neurotechnology transitioned from experimental science to commercial reality. For investors and entrepreneurs, this evolution creates both unprecedented opportunities and the need for sophisticated strategies in an increasingly complex landscape.
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