No Need to Open the Skull for Neural Interfaces: Chinese Company BrainCo Bets on Wearable BCIs
When talking about brain-computer interfaces (BCI), the name that dominates the debate is Neuralink, the company founded by Elon Musk that develops brain implants aimed at restoring functions compromised by neurological conditions or injuries. In China, however, the focus is on making this technology accessible without any surgical intervention.
Among the companies leading this approach is BrainCo, a startup founded in 2015 within the Harvard Innovation Labs, now recognized as one of the so-called "Six Little Dragons" of Hangzhou, a group of young companies symbolizing China's technological expansion. The company, featured in a CNBC special, develops systems capable of acquiring electrical signals from the brain through the scalp using bands and helmets equipped with sensors, completely avoiding the implantation of electrodes inside the brain.
BCIs process brain activity and transform it into commands intended for external devices. Thanks to advances in artificial intelligence, particularly in signal processing algorithms, this technology is reaching new milestones, already enabling some patients with neurodegenerative diseases, such as amyotrophic lateral sclerosis (ALS), to write texts or control applications simply through thought.
According to BrainCo, however, not all applications require a brain implant. Senior Vice President Nyx He claims that many conditions can be addressed with non-invasive systems, characterized by lower costs, reduced clinical risks, and easier acceptance by users. The main challenge lies in acquiring sufficiently clear brain signals from outside the skull, a task complicated by the weakness and noise of the collected data. To tackle this problem, the company has developed proprietary dry electrodes and artificial intelligence algorithms dedicated to decoding signals.
BrainCo states that the data remains stored locally on the users' devices, without being transferred to the cloud, and is deleted after each use. The technology is already employed in commercial products. The bionic prosthetics developed by BrainCo, approved by the U.S. Food and Drug Administration, interpret the residual neural and muscular signals from amputees, transforming them into movements of the artificial hand's fingers. Alongside the medical sector, the company also offers wearable devices aimed at well-being, including a sleep system that uses low-intensity electrical impulses to stimulate neurotransmitters associated with stress reduction.
The roadmap follows a precise path: starting with medical applications aimed at patients who need the technology the most, then gradually extending usage to treat disorders such as ADHD and depression, and finally reaching the consumer market with mass-market electronic devices. In the long term, BrainCo also intends to license its technology platform to other companies, transforming BCI software and algorithms into a primary revenue source.
The startup has raised approximately 2 billion yuan, equivalent to about 280 million dollars, in a round led by IDG Capital and Walden International, a fund founded by the current CEO of Intel, Lip-Bu Tan, and according to rumors, it has discreetly initiated the path towards a potential listing on the Hong Kong Stock Exchange.
Beijing has included brain-computer interfaces among the strategic industries of its five-year plan, and seven ministries have outlined a national program aimed at achieving significant technological advancements by 2027. Several local administrations are also accelerating research, production, and industrialization in the sector, while hospitals and universities are directly collaborating with startups to facilitate clinical trials and product development. China has also created a specific insurance category for BCIs, a measure that could promote a faster spread of rehabilitative technologies.