Bridging the Gap Between Human and Technology: Investment Landscape and Business Prospects of Brain-Computer Interfaces in CEE

Brain-computer interfaces (BCIs) are revolutionizing the way we interact with technology. BCIs provide a direct communication pathway between the brain and an external device, enabling the individuals to control computers and other devices, such as prosthetics, using their thoughts.

With the rise of artificial intelligence and machine learning, the field of BCIs has gained significant momentum, including increased investment and research worldwide.

In this week’s newsletter, I will share some information about the investment landscape and business prospects of BCIs in Central Eastern Europe and highlight the most promising companies in the field.

What is a Brain-Computer Interface?

Brain-computer interface technology (also referred to by the acronym, BCI) allows a direct connection between the human brain and an external device, such as a computer or a prosthetic limb. It enables people to control and interact with technology using their thoughts or brain impulses.

BCIs monitor and translate brain activity, usually via sensors mounted on the scalp or directly on the brain. These sensors detect electrical signals produced by neurons. Advanced algorithms and machine learning approaches are then used to analyse and interpret these signals, converting them into commands that the external device can understand.

BCIs can have an enormous impact on healthcare, gaming, virtual reality, market research and other industries. The technology can give businesses additional insight into customer experiences and preferences, allowing them to create more personalised, precise, and immersive solutions, products, or services.

Unleashing the Potential: BCI Investment Landscape in CEE

The investment landscape of BCIs in CEE is rapidly growing. The region has attracted significant investment from venture capital firms and angel investors who recognize the potential of the emerging technology. According to Dealroom.co ’s report, European Deep Tech startups (including those working on BCIs-related products and services) raised $17.7B in 2022, 22% less than 2021 total, but still 60% more than in 2020. 

The growth of BCIs in CEE can be attributed to the region's strong academic research, a skilled workforce, and relatively low costs compared to Western Europe.

There are several venture capital funds that are actively investing in brain-computer interface businesses worldwide right now. You should keep an eye on:

Khosla Ventures : This venture capital firm has a keen interest in investing in companies that are leveraging artificial intelligence, including those developing BCIs. They have invested in companies such as CTRL-labs (eventually acquired by Meta), a startup that has developed a non-invasive BCI wristband that allows users to control devices using their thoughts.

Lux Capital : Lux Capital has a focus on investing in companies that are developing disruptive technologies, including BCIs. They have invested in Paradromics Inc. , a company that is developing high-bandwidth BCIs for treating neurological disorders.

Mithril Capital Management LLC : This venture capital firm is particularly interested in investing in firms creating technology that increase human performance, such as BCIs. They have made an investment in Kernel , a business that is developing non-invasive BCIs for the study and treatment of brain disorders.

In terms of the notable recent rounds globally, here are some worth taking a look at:

Synchron : In May 2022, Synchron, a company that is developing an implantable BCI device for people with paralysis, raised $105 million in a Series C funding round led by SoftBank Group Corp. .

Neuralink : In November 2021, Neuralink, the brainchild of Elon Musk, raised $205 million in a Series C funding round led by GV (Google Ventures) . Neuralink is developing implantable BCIs for treating neurological disorders.

The market for BCIs is expanding, and their popularity among investors suggests that this trend will continue, also in Europe.

The market potential for BCIs in CEE is enormous. The healthcare, gaming, and defence sectors are just a few areas where this technology could be used.

Pioneering BCI Startups Shaping Central and Eastern Europe

In Central and Eastern Europe, several promising startups are driving the development of BCIs. The first one that comes to mind is Neuron Soundware from the Czech Republic, that has created a BCI-driven system for identifying and diagnosing mechanical faults using sound.

Neuro Device S.A. , a Polish firm that's developed a non-invasive BCI device to aid in the motor recovery of stroke victims, is another great example.

While headquartered in Switzerland, MindMaze has a presence and operations in the CEE region. They've created advanced BCIs that combine virtual reality and neurorehabilitation approaches to help with stroke recovery and other neurological problems.

EMOTIV is a company that focuses on creating wearable BCIs for consumer applications. Their products allow users to interact with technology and virtual environments using their thoughts and emotions, opening up possibilities in gaming, entertainment, and mental wellness.

BCIs are rapidly evolving, and the investment landscape and business prospects in CEE are promising. The potential applications of BCIs are vast, and several startups in the region are at the forefront of developing innovative solutions. As the technology continues to evolve, it is expected that BCIs will become more prevalent in several industries, driving economic growth in CEE.

What are your thoughts on that cutting-edge technology? Let me know in the comments section.

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