BrainCo's $100M Funding Push: From Controversy to Medical Tech Leader

BrainCo, a brain-computer interface startup based in Hangzhou, is in talks to raise about US$100 million in pre-IPO funding at a valuation above US$1.3 billion, according to sources. This major fundraising push underscores BrainCo’s ambition to scale rapidly and secure a competitive foothold in the worldwide neurotechnology market ahead of a public listing. The company, known in China as Zhejiang Qiangnao Technology Co., aims to compete with Elon Musk’s Neuralink and carve out a leading position in both domestic and global biomedical innovation.

BrainCo has distinguished itself through its development of advanced bionic limbs and brain-controlled computing technologies, focusing on solutions that promise to dramatically improve the quality of life for individuals with disabilities. Leveraging breakthroughs in brain-computer interfaces (BCI), BrainCo’s devices allow for more natural and intuitive control, opening new possibilities for amputees and people with neuromuscular conditions. The company’s innovations go beyond hardware, integrating artificial intelligence to optimize device responsiveness and user experience.

Founded in 2015 by Han Bicheng, BrainCo is reportedly preparing for a potential IPO in Hong Kong or mainland China, though no final decision on the venue has been made. The choice of listing destination will reflect both market conditions and regulatory factors in the rapidly evolving biotech sector. Negotiations around the fundraising and IPO details are ongoing and may change based on shifting investor sentiment and broader economic trends.

BrainCo is part of a group of Chinese tech startups that have attracted increased investor attention, joining the ranks of DeepSeek, Manus, and other rising stars in high-tech innovation. These companies signal a new wave of China’s ambition to lead in strategic technology domains, particularly in sectors interfacing with healthcare and the human body.

Successful tech pivots can emerge from regulatory and social resistance

BrainCo’s journey illustrates how startups can transform setbacks into opportunities by redirecting their core technology toward different markets. Initially, BrainCo focused on educational applications, deploying EEG headbands in Chinese schools to monitor student attention levels and selling 20,000 devices by 2017. Yet, despite these early achievements, privacy and surveillance concerns led to a significant backlash from parents and educators, forcing schools to halt trials in 2019 and highlighting the risks of introducing novel technology into sensitive environments.

Rather than abandon their brain-computer interface technology, the BrainCo team chose to leverage their scientific advances and refocus on the high-impact field of medical applications. They have since concentrated on developing “bionic limbs and technologies for human brains to control computers,” positioning themselves as formidable Neuralink competitors. This strategic pivot enabled the company to tap into urgent global demand for assistive medical technologies while sidestepping the regulatory and ethical controversies associated with their original educational products.

This strategic shift demonstrates how companies can leverage existing R&D investments when their original market proves problematic, transforming from a controversial educational tool company into a potential medical technology leader. BrainCo’s evolution is a testament to the agility and resilience required for success in fast-moving tech landscapes, as well as the significance of aligning cutting-edge innovation with societal needs and values.

Investor appetite for brain-computer interfaces remains strong despite past controversies

BrainCo’s valuation trajectory reveals how investors separate promising core technology from problematic early applications. While the controversy over educational surveillance forced school trial shutdowns, it ultimately underscored the versatility of BrainCo’s platform and the adaptability of its leadership. The company’s ability to reposition itself and keep innovating has attracted substantial investor interest.

About to seek $100 million in pre-IPO funding at a valuation exceeding $1.3 billion—a dramatic leap from earlier funding rounds of $5.5 million in 2017 and $15 million by 2019—BrainCo exemplifies how strategic pivots can unlock new growth. Its recognition among China’s “Six Little Dragons” reflects investor optimism that BrainCo’s focus on medical brain-computer interfaces positions it at the forefront of a burgeoning sector.

Importantly, this valuation resilience suggests that consumer and regulatory resistance can derail specific product applications, but does not necessarily diminish the value of scalable, transformative technology platforms. As regulations evolve and social acceptance increases for medical and assistive technologies, platforms like BrainCo’s stand to benefit, continuing to attract significant investor interest and driving the sector’s growth. For BrainCo, the journey from controversy to innovation leadership shows how adversity can spark direction-setting pivots, sustained investment, and groundbreaking advances in the field of brain-computer interfaces.