Flexolinkai Completes Tens of Millions RMB Pre-A Round Financing to Accelerate Commercialization of Non-Invasive Brain-Computer Interface Products

October 9th News: FlectoThink, a company dedicated to creating "brain-computer interface + human-computer interaction" infrastructure, has recently completed a Pre-A round of financing worth tens of millions of yuan. This round of financing was led by Shanghai Blue Bay Sci-Tech Group, with investments from ZHENG HESHAN and former Bain Capital partners, along with two industrial capital firms that are undisclosed for now as they are financial investors. Jupiter Capital served as the financial advisor for this round of financing. After completing this round of financing, FlectoThink plans to accelerate the commercial expansion of products such as the EEG sleep monitor that have already been approved for market release, while also expediting the clinical research of its ongoing pipeline and the registration process for multiple Class II/III medical devices.

# Brain-Computer Field Booming, FlectoThink's Commercial Value Highlighted

FlectoThink, founded in 2020, has rapidly progressed from "concept to prototype to product" over the past three years. In fact, early on, thanks to the interdisciplinary background of the founding team and the global vision of Dr. Sun Yu, FlectoThink’s core founder, the company consciously pursued a differentiated strategy. Chen Wenkai, co-founder and Chief Business Officer, explained: "From the start, we positioned ourselves to explore the promising blue ocean markets of brain-computer interfaces and human-computer interaction based on brain-computer technology. On one hand, the traditional medical market is a vast red ocean with many companies competing, where firms only need to develop products according to the medical insurance catalog—a task that holds little challenge for us with our cutting-edge technology. On the other hand, FlectoThink possesses leading technology and aims to become a creator of brain-computer intelligence infrastructure. We focus on addressing current market pain points by providing better services rather than duplicating existing efforts." FlectoThink’s confidence stems from its top-tier multidisciplinary team specializing in "brain-computer technology + AI + neuroscience."

Currently, FlectoThink has a research and development team of more than 60 people. One-third of the team members hold doctoral or master’s degrees, including a foreign academician of three academies. For example, Dr. Sun Yu, the founder, graduated from the Department of Polymer Science at the University of Akron in Ohio, which is recognized as one of the top departments in the U.S. Dr. Liu Bing, the Chief Scientific Officer, has a background in biomedical engineering and comes from the Institute of Automation at the Chinese Academy of Sciences. Before returning to China, he worked as a researcher at Duke University's world-leading brain-computer interface lab in the U.S., focusing on areas such as implantable brain-computer interfaces and computational neuroscience. With such a team, FlectoThink has obtained 218 patent filings and nearly 60 invention patents (as of 2022). The company has also jointly initiated the application for the "Science and Technology Innovation 2030 – ‘Brain Science and Brain-Inspired Research’ Major Project" with Beijing's 301 Hospital, Tiantan Hospital, and Tsinghua University. Additionally, it participated in drafting and publishing the MIIT CATR's "Overall Vision and Key Technologies of Brain-Computer Interfaces Research Report (2022)." Recently, FlectoThink was elected as a standing council member of the Brain-Computer Interface and Brain-Inspired Intelligence Professional Committee of the China Association for Standardization. Dr. Sun Yu was appointed as the Deputy Director, while Dr. Liu Bing was appointed as a member of the ISO/IEC JTC1 Brain-Computer Interface China Expert Committee under the China Electronics Standardization Institute.

A global strategic vision, familiarity with cutting-edge EEG, EMG technologies and related materials, as well as a focus on commercialization, have enabled FlectoThink to quickly establish a strategic layout in "brain-computer interface + human-computer interaction." Centering on materials and algorithms, the company has prioritized the development of three major product lines. The first is FlectoThink's series of medical-grade flexible EEG sleep patch products in the EEG field. Currently, the first-generation EEG sleep monitor based on the flexible EEG sleep patch has been approved and launched in the market. The second-generation multimodal PSG-like product is also in the registration process. Furthermore, while achieving precise sleep monitoring, FlectoThink is further advancing targeted sleep intervention through sound stimulation, which is currently undergoing clinical trials. Additionally, for hospital use, and based on prior clinical research data, FlectoThink is further expanding the medical application scenarios of its EEG sleep patches, such as the quantitative monitoring and identification of comorbidities between sleep and diseases like cognition, emotion, and pain.

Chen Wenkai pointed out, "Based on precise quantitative indicators such as sleep monitoring, we can better empower all parties in the sleep and sleep comorbidity industry chain." For example, digital therapeutics companies often lack sufficiently accurate monitoring devices in home scenarios, making it difficult to effectively evaluate the effects of digital therapies. However, with devices like FlectoThink's sleep monitor, this situation can be changed. Additionally, FlectoThink can also serve manufacturers specializing in sleep regulation by combining quantifiable sleep metrics with various products, delivering a quantifiable positive closed-loop application experience to users. In the hospital market, FlectoThink is pleased to find that the "Chinese Expert Consensus on Digital Therapeutics for Insomnia" released by the Psychosomatic Medicine Branch of the Chinese Medical Association has included FlectoThink’s latest EEG patch products based on brain-computer interface technology and sound-targeted closed-loop physical therapy technologies. Meanwhile, FlectoThink has also begun collaborating with major hospitals in provinces such as Hebei and Sichuan, as well as cities like Nanjing and Shenzhen, to establish regional sleep and sleep comorbidity monitoring and treatment centers. These collaborations extend to building sleep monitoring sub-centers within cooperative medical consortium institutions and community health centers, supporting full-course health management for patients based on sleep through a tiered diagnosis and treatment system.

Secondly, FlectoThink is laying the groundwork for the future with its invasive flexible brain-computer interface (BCI) products. These invasive BCI products are currently being developed in collaboration with several top hospitals in China, including Xuanwu Hospital and the 301 Hospital. FlectoThink recognizes that integrating adaptive decoder designs with neuromorphic intelligence technologies based on neural learning will lead to the next generation of BCI systems: ones that are high-performing, highly robust, and more versatile. Its proprietary materials, chips, system architecture, decoding algorithms, and medical expertise are also driving breakthroughs in FlectoThink's invasive brain-computer interfaces. Currently, the company is focusing on advancing applications of invasive BCIs in scenarios such as enabling ALS patients to write and implementing visual implants.

Third, there is FlectoThink's electromyography (EMG) product. The similarity in research logic to its EEG products allows FlectoThink to expand rapidly. While working towards creating new interactive methods for the future metaverse, FlectoThink is also attempting commercial implementation: it has already partnered with a major Chinese automobile manufacturer to validate human-machine interaction solutions based on EMG technology, exploring entirely new commercial applications.

Behind the different pipeline layouts, FlectoThink also plans to register medical device licenses for both software and hardware products separately to meet the needs of different customers. In line with the technical research philosophy upheld by a host of brain-computer interface manufacturers in China, FlectoThink continues to deepen its technological expertise through its team. At the same time, FlectoThink emphasizes that aligning with market demands, achieving the commercial implementation of technology, and enhancing product usability can better contribute to the development of technology.

# CompletedCompleted Pre-A Round Financing, Continuously Expanding Innovative Application Scenarios

Chen Wenkai, co-founder of FlectoThink, pointed out that the proceeds from this round of financing will also be mainly used in the following areas — First, to further promote the market expansion of the EEG sleep monitoring device product approved in May this year. For FlectoThink, the promotion model is already relatively mature. The company plans to focus on hospitals at all levels, assisting in building regional smart sleep centers, and combining with institutions such as sports rehabilitation, Traditional Chinese Medicine (TCM), health management, retail pharmacies, internet hospitals, and psychological meditation organizations to achieve product integration and empowerment. While focusing on cultivating the H-end market and balancing the B-end market, FlectoThink will gradually expand the C-end market through partners' online medical e-commerce platforms, promoting product coverage on a larger scale. Additionally, based on the demands of Zhengheshuang, a leading chain pharmacy in Southwest China that participated in this round of financing, FlectoThink's internet hospital is currently applying for a license. Subsequently, it will integrate with Zhengheshuang’s more than 1,000 offline pharmacies, further empowering pharmaceutical companies’ digital transformation in health through quantified data from wearable EEG patches.

Secondly, it is to further explore the commercial application of EMG wristbands. While FlectoThink has been attempting solutions with automobile manufacturers in the early stage, it will further collaborate with metaverse infrastructure providers and mainstream AR/VR/XR brand companies to explore interaction methods and carry out commercial practices. Thirdly, it is to increase R&D investment in invasive brain-computer interface products, accelerate clinical trials, and better address current challenges faced by patients—such as restoring walking ability through spinal cord electrical stimulation, rebuilding vision for the blind through artificial visual perception, emotion decoding, and closed-loop emotion regulation, among others. FlectoThink also stated that this round of financing will be used to further expand the team and attract more talents who are passionate about contributing to the "brain-computer + EMG interaction" field. For FlectoThink, they will gradually update and iterate their existing products while expanding application scenarios. Moreover, their market will not be limited to China—based on sufficient product application domestically, they plan to explore broader overseas markets. "It takes a significant amount of time for a technology to evolve from concept to clinical application. Currently, many companies in the brain-computer field are still in the early stages of development. Enterprises need to be down-to-earth, identify actual needs, and solve industry pain points step by step. Only by facing the market and synchronizing commercialization with technological R&D can we better support scientific research," pointed out Chen Wenkai. FlectoThink will also showcase human-computer interaction products available for on-site experience at the November Suzhou Electronics Information Expo, targeting a global audience. Meanwhile, it plans to formally sign cooperation agreements with Global Fortune 500 companies at the 2023 Shanghai CIIE. FlectoThink sincerely invites industry professionals to visit and witness.

Regarding the investment in FlectoThink, Deng Jianxin, founder of Lanwan Technology Group, stated: "The brain-computer interface sector is about to move towards the critical juncture of commercialized technology implementation and industrialization, especially in the field of human-computer interaction. The technological and application innovations in brain-computer interfaces are expected to drive a paradigm shift in human-computer interaction. FlectoThink holds global leadership in the 'brain-computer interface + human-computer interaction' domain, possessing not only a team with strong technical innovation capabilities and comprehensive commercialization expertise but also creatively integrating three major scenarios—brain-computer interface, electromyography, and the metaverse—to explore a trillion-dollar application market potential. We highly anticipate that FlectoThink will continue to leverage its world-class 'EEG + EMG' technology and cutting-edge 'material + module' technology to continuously achieve application innovation and technological iteration, becoming a benchmark enterprise in the future brain-computer interface industry."

Su Tongming, founding partner and CEO of Jupiter Capital, the financial advisor for this round of financing, stated: "The brain-computer interface track has entered a period of rapid development. Jupiter Capital continues to be optimistic about the technological and product innovations in the brain-computer interface field. As a leading innovative enterprise in the 'brain-computer + neural interaction' domain, FlectoThink has been committed to exploring technological and product innovations in the brain-computer interface sector, focusing on the research, development, and commercial application of brain-computer interface technology. We are honored to have maintained a long-term cooperation with FlectoThink and to participate as the financial advisor in this round of financing. We look forward to FlectoThink building a set of professional infrastructure for 'brain-computer interface + human-computer interaction' for the global market after this new round of financing, delivering a new paradigm of human-computer interaction experience and future technology."

FlectoThink CEO Sun Yu pointed out: "Against the backdrop of a capital and market downturn, the fact that we continue to gain favor from numerous investors essentially reflects their confidence in China's future development and trust in China's self-innovative hard technology enterprises. FlectoThink is one such representative. With our unique materials, chips, system architecture, decoding algorithms, as well as medical research and clinical capabilities, we strike a balance between technological advancement and commercialization while leveraging global resources to keep moving forward amidst adversity. We firmly believe that in the near future, we will become one of the leading companies in the global brain-computer interface industry. We also look forward to more investors joining our great cause in the future, including those with industrial synergy and strategic investments."

Jupiter Capital is a long-term, in-depth partner of FlectoThink. The Jupiter Capital team has left a deep impression on me with their unique insights and rich project experience in the brain-computer interface sector. We are grateful for the support from the Jupiter Capital team during this round of financing, which not only greatly assisted FlectoThink on the corporate fundraising side but also provided high-quality advice, help, and resource connections from the company's strategic level. We look forward to continuing our cooperation with Jupiter Capital and creating brilliance together.