A new Chinese neurotechnology startup is drawing strong interest from investors as the push to create safer brain-computer interfaces speeds up. Gestala, which is working on non-invasive ultrasound brain technology, raised $21.6 million only two months after launching.
The funding round highlights growing investment in next-generation brain-computer interfaces (BCIs), particularly technologies that aim to interact with the brain without requiring surgical implants.
Startup raises $21.6M shortly after launch
TechCrunch reports that Gestala raised $21.6 million (CN¥150 million) just two months after launching. Founder and CEO Phoenix Peng said the company is now valued between $100 million and $200 million.
According to TechNews180, Guosheng Capital and Dalton Venture co-led the financing round. Other investors included Tsing Song Capital, Gobi Ventures, Fourier Intelligence, Liepin, and Seas Capital.
Investor demand exceeded the amount the company initially planned to raise. Peng said the funding round was “heavily oversubscribed,” with investor commitments totaling more than $58 million.
This is said to be the largest early-stage funding round in China’s brain-computer interface sector, showing the increasing global competition in neurotechnology.
Gestala was founded by serial entrepreneur Phoenix Peng, who is also known for leading NeuroXess, a company developing implantable brain-computer interfaces.
Focus on non-invasive ultrasound brain technology
Gestala is creating a brain-computer interface that uses ultrasound rather than implanted electrodes.
Peng said the company’s technology is meant to solve a big challenge for BCIs. According to TechCrunch, he believes non-invasive ultrasound could address one of the biggest barriers to BCI adoption: the risks associated with brain surgery.
Traditional brain-computer interfaces often use electrodes implanted in the brain to read signals. These devices can capture accurate signals but need invasive surgery.
Gestala’s method uses phased-array ultrasound to stimulate or suppress neural activity without surgery. This may let researchers monitor more of the brain, including deeper circuits.
The company describes ultrasound technology as a potential next generation of neural interface systems capable of interacting with the brain in new ways.
Funding to expand research and manufacturing
Gestala plans to use the new funding to grow its research and development work.
The company wants to grow its team from 15 to about 35 employees by the end of the year and build a manufacturing facility in China.
The startup is targeting the completion of its first-generation prototype by the end of the year, marking an important milestone in its technology roadmap.
Medical uses are expected to be among the first areas Gestala develops. Peng said their main program is chronic pain management, which affects many people worldwide.
Studies cited by the company suggest that ultrasound stimulation can greatly reduce pain, supporting its possible use as a therapy.
Growing global competition in brain-computer interfaces
This funding comes at a time when the brain-computer interface industry is seeing a surge in investment around the world.
More investment is going into ultrasound-based brain-computer technologies, with companies in the US and China working on non-invasive methods.
Startups like Merge Labs in the US are also working on ultrasound-based brain-computer interfaces. This shows a wider industry move toward technologies that interact with the brain without implants.
Peng hopes that future neurotechnology research can benefit from international collaboration, even with current geopolitical tensions.
As investment in neurotechnology continues to expand, companies like Gestala are seeking to develop new ways for computers to interact with the human brain while minimizing the medical risks associated with invasive procedures.
