Early Investors in China's BCI Sector Speak: Pioneering Funds Back Breakthrough Neurotech Startups

Lu Jiaojiao: The four guests invited today all have extensive investment experience in the healthcare sector and have made forward-looking investments in the brain-computer interface (BCI) space. Please introduce yourselves and your respective institutions in turn.

Lu Qinchao: I am Lu Qinchao, Founding and Managing Partner of Danlu Capital, with a background in clinical medicine. Danlu Capital is an early-stage investment firm focused on the healthcare and wellness sector, managing over RMB 2 billion in assets. We primarily invest in early-stage projects at the intersection of medicine and engineering, and have established collaborations with numerous renowned physicians and scientists. In the field of brain-computer interfaces, Danlu Capital has invested in multiple projects, such as,Lingxi Medical: Disease Diagnosis via EEG Analysis and Algorithms; In addition, it has also invested inExtracranial ultrasound therapy for brain disorders, auxiliary target prediction for pharmaceutical companies, and invasive flexible electrodesand other enterprises.

Li Zhe: I am Li Zhe, Managing Partner of Proxima Ventures. Our firm focuses on early-stage investment and innovation, having invested in a total of 66 companies, with 75% of the projects invested in during the first two rounds and one-third as the lead investor in the Series A round. In terms of investment sectors, two-thirds of our portfolio is concentrated in medical devices and diagnostics, while one-third is in life sciences. We support the translation of innovative technologies through various approaches, such as collaborating with the School of Pharmacy at Fudan University to jointly research next-generation drug delivery technologies for ophthalmology. In the field of brain science, our investedHailai Xinchuang disrupts tumor division via external electric fields, showing broad application prospects in areas such as glioma and lung cancer.InvestmentRuishen An is the first company in China to develop a closed-loop DBS system.As the lead investorRuiyi Xulian proposed the concept of a brain-spinal cord interface.Foreign company Onward has recently achieved a breakthrough in this field, helping patients with spinal cord injuries regain the ability to walk upright. In comparison, Ruiyi Xulian Testing employs more electrodes, utilizing 128 channels for detection and 32 channels for stimulation.

Ma Rui: I am Ma Rui, a partner at FreeS Fund. FreeS Fund is a highly active early-stage investment firm that typically serves as the lead institutional investor in Series A rounds. Our investment portfolio spans technology, healthcare, and consumer sectors, with assets under management exceeding RMB 7 billion. The Shanghai Angel Guidance Fund is one of our limited partners (LPs), and the fund is based in Jiading District, Shanghai. One of FreeS’ distinctive investment strategies is to pioneer cutting-edge opportunities at the intersection of multiple disciplines, with brain science being a key focus area.In 2019, FreeS Fund invested in Ubrain Galaxy, a company that leverages functional magnetic resonance imaging (fMRI) to achieve navigation at the individual level and combines it with transcranial magnetic stimulation (TMS) for treatment.TMS itself is a mature technology, but China has achieved significant results through precise TMS therapy. In the past two years, the United States has also begun to emphasize the use of magnetic technology for precise modulation. We believe that measurement is a crucial step in brain research. ThereforeWe have invested in multiple measurement technology companies, including those specializing in ultrasound and magnetoencephalography (MEG), as well as companies focused on neuromodulation. We have a strong preference for non-invasive approaches; therefore, we have invested in technologies utilizing electrical, magnetic, and ultrasound methods. However, we also recognize that invasive techniques represent an emerging trend.Because Musk has been lobbying the FDA to approve human trials, progress in the United States is advancing rapidly. China’s greatest advantage lies in its large patient population, and we should strive to leverage this strength.

Wu Jialu: As a sub-fund of the Angel Guidance Fund, Shicui Capital is deeply honored to have received the Annual Active Angel Award for two consecutive years. Even during the so-called "capital winter," we maintained a positive mindset and carried out extensive, productive work. Shicui Capital primarily focuses on investments in the medical device and biotechnology sectors, with strategic deployments in the brain-computer interface (BCI) field. As mentioned by Mr. Li Zhe,Ruishen'an, we also made investments. In addition, we invested inJialiang Medical, which focuses on neural implants, and RealWellCon, which develops wearable devices for detecting Parkinson’s disease and epilepsy.I also serve as an independent director of Vishee Medical, a publicly listed company. Initially focused on gynecological rehabilitation devices at the time of its IPO, Vishee Medical has seen its TMS products gradually become the core revenue source in recent years, maintaining robust growth. Therefore, we believe that brain science represents a vast and promising frontier, and we look forward to becoming the first institutional investor for entrepreneurs in this field.

Lu Jiaojiao: Brain-computer interfaces represent the future—a view we largely share. However, what stage is the industry currently in, what are its defining characteristics, and how is commercialization progressing?

Li Zhe: I believe that brain science can be divided into two major parts: "reading the brain" and "writing to the brain." First,To Interpret Complex EEG Signals. As the electrode insertion depth varies, the acquired signals become more precise. Electroencephalogram (EEG) signals are extremely complex, particularly those collected non-invasively from the body surface and scalp; powerful algorithms are required to process these signals and filter out noise in order to extract valid brain signals. Secondly, "writing to the brain" involves delivering corresponding and meaningful neural signals into the brain. Currently,Closed-Loop Read-Write Feedback Has Become an Important Research Direction, including signal acquisition, as well as stimulation and feedback of valid signals. One of the research directions we have also observed isNerve Regeneration, aiming to restore signal transmission by reconstructing neural pathways, but this is extremely challenging, and the field still awaits breakthroughs in the future. We have witnessed many encouraging advances, with companies such as Neuralink and Onward demonstratingClosed-Loop Stimulation via Read-Write Feedback, and even the possibility of reconstructing neural pathways. This is what we currently observeofCutting-Edge Advances. The investments we have made inRuiyi XulianFocusing on the most challenging areas, we strive to help patients identify motor intentions through signal reading and stimulatory feedback, thereby assisting in limb control via stimulation. AboutFuture Development Directions, is it possible for usFrom Invasive to Minimally Invasive, to Non-InvasiveWound. We have studied various non-invasive techniques, such as those just mentionedHailai Xinchuang, by interfering with cellular mitosis through extracorporeal electric fields. In the future, we can envision whether it is possible to decode and modulate active neural electrical signal pathways, evenReplace implanted electrode stimulation with wireless stimulation.Currently, many interdisciplinary technologies have been applied in this field, and several of our investment projects are alsoApplication of wireless charging technology to achieve transcutaneous energy delivery, including wireless modulated signals, enabling stimulation techniques previously achieved via implanted electrodes.Overall, brain-computer interfaces (BCIs) involve a wide range of complex, interdisciplinary applications, including electrode material technologies and algorithm-driven computational power for personalized signal processing. Whether in scientific research or entrepreneurship, the BCI field offers vast opportunities for future exploration. Our fund’s investment strategy is driven by the recognition that innovative technologies have achieved breakthroughs in clinical settings and obtained valid human trial data, which serves as a critical signal for industry development.The industry is on the eve of a breakthrough.

Lu Qinchao: We have summarized the current state of the brain-computer interface (BCI) industry into four key aspects.First, technology-driven innovation is the core feature.. Brain-computer interfaces (BCIs) constitute a sector with strong technological drivers, encompassing numerous hardware devices such as electrodes and chips, as well as algorithms and decoding capabilities—all of which are technology-driven. This field involves interdisciplinary areas including neuroscience, artificial intelligence, and materials science.Secondly, brain-computer interfaces are currently in the early stages of multi-scenario application and exploration.The most mature applications remain in essential medical fields, particularly rehabilitation, such as using thought-controlled brain-computer interfaces (BCIs) to operate prosthetic limbs, as well as artificial eyes and cochlear implants. Applications in other sectors are also gradually emerging, including the use of BCI technology to improve children’s attention spans in the consumer sector, gaming applications, and enhancements in physical capabilities—such as combat effectiveness and jumping ability—through brain stimulation for defense and security agencies. These developments represent explorations across multi-scenario modalities.Third, capital and talent are the foundation of industry development.. Brain-computer interfaces (BCIs) are a capital- and talent-driven industry, as this highly advanced field requires substantial financial investment to support its development during the early stages. Meanwhile, the sector demands top-tier talent.Fourth, industry standards are not yet mature.For instance, issues regarding the ownership, security, and ethics of electroencephalogram (EEG) signals urgently need to be addressed. The future industry scale is substantial; although different research institutions employ varying prediction algorithms, there is a strong consensus that brain-computer interfaces (BCI) represent a high-potential sector, with market size projected to reach $30 billion by 2030. As a field driven by technology, talent, and capital, it is particularly well-suited for the commercialization of scientific and technological achievements.

Lu Jiaojiao: Yes, I saw that a foreign company, Alto Neuroscience, which assists in the R&D of new drugs for depression through non-invasive EEG technology, has already been listed on NASDAQ.

Lu Jiaojiao: On the next technical question, I would like to consult Mr. Ma Rui. Both invasive and non-invasive approaches have their respective technical challenges. In your opinion, what are the technological bottlenecks and potential breakthroughs for the next stage of development in the brain-computer interface (BCI) industry?

Ma Rui: UBrain Galaxy, a company we invested in, utilizes fMRI (functional magnetic resonance imaging) technology to measure brain activity and conduct individual-level functional brain assessment and parcellation, followed by transcranial TMS therapy. The company has achieved significant success; its valuation was over RMB 100 million at the time of our investment and has now reached more than USD 600 million. In collaboration with hospitals and clinics, they have treated thousands of patients, achieving an 85% remission rate for major depressive disorder, with effects lasting more than five weeks, and also demonstrating substantial efficacy in treating autism. We believe that non-invasive technologies can address certain issues, particularly when the targets are located in the cortex. RegardingMagnetic stimulation, the biggest problem lies in that although the generated conical focused magnetic field can accurately hit the target site, its penetration depth is limited, i.e., it "cannot penetrate deeply,"It is most suitable for application to the cortical surface, while being less applicable to deep brain structures; of course, there are already numerous targets within the cortex. Other investors suggest prioritizing investment in non-invasive modalities, such as ultrasound or electric fields, which do not require craniotomy but can still influence intracranial cells or functions, modulate neuronal firing, and interfere with neuronal activity to achieve desired therapeutic effects. However, non-invasive approaches have inherent limitations and cannot remain the sole focus indefinitely. I believeThe trend is to implant electrodes into the brain.In terms of data reading accuracy, intracranial methods are undoubtedly more precise. Although extracranial recordings are feasible, recording EEG signals from outside the skull is akin to hearing a goal being scored while standing outside a football stadium: the temporal resolution is high, but the spatial resolution is poor, making it suitable only for tasks that are time-sensitive. Some have proposed opening the skull and placing electrodes in the epidural space; while this approach offers greater accuracy, it still cannot achieve neuron-level resolution. Furthermore, stimulation cannot be performed in the epidural space. Therefore, future developments will inevitably involve implanting devices internally. One model we envision isFirst, non-invasive methods are used to identify the target, with external trials using magnetic, ultrasound, or electrical stimulation. While effective, the daily hospital visits are burdensome; therefore, a device is implanted into the intracranial cortex or even deeper brain regions., if achievable, it would help address many unmet clinical needs and eliminate the burden on patients of having to return to hospitals or clinics daily.InvasiveBrain-Computer Interfaces inSafety, Efficacy, and Cost Control...remain in their infancy. After Musk’s team implanted the electrodes, the first patient was able to complete gaming tasks; however, the patient’s electrodes later became detached and displaced. In the second patient, 400 out of 1,024 electrodes successfully captured signals.Invasive approaches currently face numerous challenges, such as the choice of electrode materials, whether their mechanical compliance matches semiconductor fabrication processes, whether they can remain stable after implantation or migrate, which neurons to target, whether electrodes initially targeting specific neurons might drift to other locations, how deep they can be inserted, how long they can remain in place, whether they trigger immune responses, and what the associated costs are. Before developing brain-computer interfaces, even more fundamental questions must be addressed: Where should they be implanted? And for what purpose?A vast body of scientific research has been conducted in this area, such as mapping neural circuits to determine the functions of specific brain regions, identifying the most critical nodes within those regions, and assessing the effects of stimulating these nodes. The goal is to align these findings with clinical needs. This approach was originally intended to precede the development of brain-computer interfaces (BCIs). However, given the immense appeal of the BCI concept, a surge of researchers and developers have flocked to this field, raising the question: what exactly should be developed?

Lu Jiaojiao: Perhaps they can complement each other. Previously, the absence of this tool limited our understanding of cranial nerves and basic research. However, breakthroughs in brain-computer interface technology have accelerated the progress of basic research, thereby enhancing our understanding of the brain.

Lu Jiaojiao: In terms of the technical challenges of invasive procedures, how does China compare with Elon Musk’s “implantable” device?

Ma Rui: I am not entirely certain. The electrodes are placed in the cortex; they are relatively short and implanted using a robotic sewing machine. Some entrepreneurs have stated that this approach is not always necessary, unless targeting deep brain structures.

Lu Jiaojiao: Regarding the issue of accuracy in non-invasive signals, some companies hope to use large EEG models to address signal quality issues to a certain extent. What is your view?

Ma Rui: I am particularly fond of various measurement techniques, each with its specific applications. Electroencephalography (EEG) is suitable for scenarios requiring high temporal resolution, such as capturing the sudden electrical discharges associated with epilepsy. There are modalities that achieve even higher temporal resolution or frame rates than EEG, such as ultrasound, which can visualize cerebral blood flow and detect rapidly moving red blood cells.It still depends on the task you need to perform: whether it is to localize a point or to capture an event.Many psychiatric disorders lack such characteristic signals; they do not manifest as abnormal electrical discharges at a specific time point, but rather as functional abnormalities or neural circuit dysfunctions. Can EEG address this? We are already capable of achieving much with EEG, yet there is a desire to do more. Whether we can combine EEG with large language models to directly classify psychiatric disorders, and even predict and diagnose medication responses, remains to be seen. I am uncertain whether accumulating more data will necessarily lead us in this direction. From a first-principles perspective, simply scaling up data may not suffice. This is my personal view.I believe that research on large-scale EEG models is meaningful. Among all these detection methods, EEG technology is the most widely used and has accumulated the largest amount of data,In-depth analysis leveraging AI technology may yield new discoveries.

Wu Jialu: I believe that by continuously searching through existing databases using large models and AI algorithms, the larger the dataset, the more likely we are to identify certain correlations between a specific type and a particular characteristic. ButFrom a medical perspective, associations identified by large language models must be validated on unseen medical records to be truly effective.One can always identify a so-called algorithmic pattern within a large dataset, but does this pattern truly align with the fundamental nature of the phenomenon? Substantial validation against unknown cases is required; if such validation succeeds, the findings would be highly valuable.

Lu Jiaojiao: Mr. Jia Lu, neuromodulation is a relatively mature track in the industrialization of brain science. Do leading companies have significant first-mover advantages?

Wu Jialu: We have described the pursuit of grand ambitions as a noble endeavor, but translating an innovation into a commercially viable medical product requires overcoming numerous obstacles and enduring rigorous testing. This is especially true for interventions that target the brain, as they can profoundly affect an individual’s personality and life. Such technologies must withstand the test of time; becoming a certified medical device is by no means a trivial matter. Consequently, countries worldwide enforce strict regulations on medical devices, with particularly stringent requirements for implantable neuromodulation devices, which also present exceptionally high technical barriers to R&D. Therefore, among those already commercializedIn the field of implantable neuromodulation, first-mover advantage or leadership is particularly pronounced.This is also evident from the establishment dates and certification timelines of companies that have achieved a certain commercial scale. PINS Medical, founded in 2013, obtained its first Deep Brain Stimulation (DBS) certificate that same year. Over the past decade, it has maintained a significant lead in the industry. Jingyu Medical, which secured the second domestic DBS certificate after being founded and obtaining approval in 2016, has developed over the subsequent seven to eight years to solidify its position as the second player, widening the gap significantly with competitors behind it. Currently, the DBS market is dominated by two major Chinese manufacturers and the imported products from Medtronic. This landscape is largely due to high technical barriers and stringent regulatory oversight of medical devices. The entire process of research and development, clinical trials, and certification is so rigorous that even with a highly capable team, reducing the typical ten-year cycle to nine years would be considered a remarkable achievement. This constitutes the so-called first-mover advantage and de facto market exclusivity. This phenomenon is particularly pronounced among already commercialized medical devices in this field.

Lu Jiaojiao: Is there still an opportunity for latecomers? Where are the breakthrough points?

Wu Jialu:The brain-computer interface market has enormous capacity and a diverse range of products; even for the same product, such as Deep Brain Stimulation (DBS), there are different indications.Initially, regulatory approvals were primarily focused on Parkinson’s disease. However, international data suggest potential efficacy in stroke, as well as in depression—particularly in reducing suicidal tendencies in patients with severe depression. Although the market size is not as large as that of deep brain stimulation (DBS), there are still other products such as vagus nerve stimulation (VNS) and spinal cord stimulation (SCS). Therefore, I believeThere is still definitely an opportunity., but as always, this type of product has extremely high technical barriers. As strictly regulated medical devices, any team planning to start a business in this field must be prepared for a long-term battle.None of the pioneers in the industry truly made it without enduring more than a decade of hardship.

Lu Jiaojiao: We’ve discussed the industry and technology; now let’s talk about business and investment. Mr. Qin Chao, Danlu Capital has invested in both non-invasive and invasive sectors. In the non-invasive field, do you believe the core barrier lies in technology or in business?

Lu Qinchao：We participated in Lingxi Medicine's Series A financing round,This project was co-founded by Professor Hong Bo from Tsinghua University and his doctoral students, with Professor Lu Bai serving as the project advisor. At that time, we placed greater emphasis on the team’s capabilities in algorithm analysis and decoding.But we feel that they are different from ordinary technical teams; they still have a strong business sense.For instance, Professor Hong Bo joined the Epilepsy Society as a council member at an early stage, establishing connections with numerous experts. Lingxi Medical’s first product focused on epilepsy diagnosis and prognosis monitoring, which allowed the company to gain early academic exposure in epilepsy applications. Consequently, it secured the first medical device certification for epilepsy and pursued commercialization within this field. Secondly, recognizing that epilepsy might represent a relatively narrow pipeline, the team leveraged its epilepsy-related development technologies to create solutions for the differential diagnosis of depression and bipolar disorder, while also advancing autism-related pipelines in phases. Regarding other explorations, as you mentioned, a U.S.-listed company is using EEG for new drug research; this is also a key area where we are making concerted efforts, collaborating with several pharmaceutical companies. Neurological diseases are characterized by subjective experiences, making it difficult to establish objective indicators for assessment. How can this be addressed? In addition to neuroimaging, EEG serves as a highly objective metric for evaluating drug efficacy by detecting changes in brainwave patterns in patients during clinical trials. Identifying new targets and conducting efficacy assessments are areas where Lingxi Medical is quietly building strength, already generating revenue in these segments, which places us in the early stages of commercialization.

Lu Jiaojiao: From what I heard, the initial approach was technology-driven, followed by inevitable exploration of commercialization, including identifying market scenarios to develop implementable products.

Lu Qinchao: Yes, although our investment is driven by confidence in the technology, we still aim for commercialization and application in the treatment of human diseases.

Lu Jiaojiao: I would like to consult Mr. Li Zhe. I understand that you come from an industrial background and provide services to innovative medical enterprises, with a profound understanding of clinical practice.YouHow to Evaluate the Clinical Value and Market Potential of Brain-Computer Interface Technology?

Li Zhe: This is an excellent question. All our innovations must address a significant unmet need. Whether in past investments or entrepreneurial ventures, we have strategically focused on unmet needs within major disease areas. Turning to brain-computer interfaces (BCIs), we observe numerous unmet needs, such as the restoration of limb function in stroke patients. This includes leveraging rehabilitation robots to rapidly and efficiently restore motor capabilities, as well as employing neuromodulation to help recover certain aspects of muscle memory. Establishing neural circuits to achieve precise motor control remains a highly challenging direction. Many rehabilitation devices we have seen in the past have evolved from passive to active rehabilitation. In the future, true integration with BCIs will be essential to restore and reconstruct motor neural pathways. Regarding brain disorders, with the continuous development and advancement of BCI technology, can regions previously targeted for therapeutic stimulation based solely on sensation or empirical experience be precisely localized using techniques such as electroencephalography (EEG) and functional magnetic resonance imaging (fMRI)?Precise localization of the lesion site, thereby enabling precise stimulation with closed-loop feedback, is also a direction worthy of in-depth exploration.In this field, we consider non-invasive approaches highly challenging due to the extremely weak signals and significant signal loss resulting from diffusion through the skull. Achieving precise monitoring of brain signals in the future may require semi-invasive or invasive methods. Additionally, there are many other promising areas to explore, including the combined use of pharmaceuticals and medical devices, a trend we observe being actively researched by numerous companies abroad.Opening the Blood-Brain Barrier via Extracorporeal Energy to Facilitate Drug Administration and Delivery, this approach is also a promising direction. I believe that to solve many challenging problems, we should consider whether other methods and technologies can be employed to achieve breakthroughs. For instance, regarding the blood-brain barrier, many drugs currently struggle to cross blood vessels and reach tumor sites. In the past, extensive research has been conducted on invasive techniques. We are also focusing on this field, where progress has been made abroad in using extracorporeal ultrasound to transiently open the blood-brain barrier, thereby enabling drug delivery. Brain-computer interfaces involve numerous interdisciplinary fields, including understanding neural pathways, reading and encoding electroencephalographic (EEG) signals, and effectively controlling these signals—all of which present significant challenges. We previously examined an artificial eye project. The process—from converting light signals into electrical signals in the retina to reconstructing them in the brain—is not simply a matter of transforming light into electrical stimuli to restore vision. It involves highly complex factors such as temporal information, spatial information, color information, and contrast information. In the future, what is highly anticipated isRegenerative medicine, which holds promise for restoring neural function via brain-computer interfaces and helping the body rebuild neural circuits to rapidly and efficiently restore patients’ limb motor function, represents our ultimate future direction for resolution.

Lu Jiaojiao: We have found that over 50% of the founders in this sector have a scientific background. Could Mr. Ma Rui please discuss the characteristics of such projects?

Ma RuiFirst, these projects all face significant challenges. In 2022, we published an article titled “Boldly Investing in Neuroscience.” Looking back, we were calling the peak at the time; from the perspective of the global liquidity cycle, it was the highest point. Over the past few years, capital has exerted considerable pressure on entrepreneurs, and under such pressure,Entrepreneurs may find it difficult to perfect their technology, instead placing greater emphasis on rapidly advancing applications and clinical practice., in the actual process of entrepreneurship, founders often find it difficult to truly realize their original intentions. Additionally, for those engaged in clinical work, scaling medical devices is extremely challenging, and not everyone is mentally prepared for this. Furthermore, with evolving technologies and uncertain applications, the path is exceptionally difficult. Nevertheless, I remain highly optimistic about the field of brain science, be-ForThere are simply too many unmet needs.Currently,There are few available drugs for brain-related diseases.Why are brain-computer interfaces useful? Because the brain is network-based, it is optimal to intervene only at the specific node of interest. The goal is not to have small-molecule drugs distributed throughout the entire brain, but rather to exert their effects at a single, targeted point within the brain. Therefore,Physical intervention methods will have very broad prospects in the future.

Lu Jiaojiao: Mr. Ma’s remarks on the pressure from capital have brought us back to reality. Ms. Jialu, how do you view your investments in neuromodulation projects?Exit Pathway？

Wu Jialu: I believe that inCapital market exits are inseparable from successful commercialization.Reviewing all of our investments,Once a company achieves a breakthrough in commercialization, proceeding to an initial public offering (IPO) in the future will be a natural progression.. Given that there are currently only a handful of companies in this industry that have achieved commercialization, the market remains a blue ocean. Over the next few years or even decades, the number of participants in this market is likely to remain limited. However, given the substantial market size, it is reasonable to conclude that PINS Medical will eventually go public; it is merely a matter of time.For later-stage startups that have already achieved tens of millions in revenue or profit, an initial public offering (IPO) is a potential future outcome.As always, the barrier to entry in this market is extremely high, and first-mover advantages are particularly pronounced. For companies still in the R&D phase, entrepreneurs are advised to be realistic and accelerate product commercialization.A company’s own development status is the key factor determining whether an exit is feasible. As an early-stage investment fund, we aim to partially exit by selling existing shares during the process.Whether a company is worth investing in depends on its ability to demonstrate potential and early signs of promise.

Lu Jiaojiao: Finally, please invite the four guests to give a one-minute introduction.The Past Two YearsPromising sectors.

Wu Jialu: I am relatively pragmatic. Over the past two years, we have not made any new investments in the brain-computer interface (BCI) sector. The reason is that before 2021, BCI was extremely popular, sparking a wave of investment enthusiasm in China. Currently, each sub-sector has developed a certain competitive landscape, making it more difficult for latecomers to secure financing and increasing their survival pressures. As investors, we also face greater pressure. However, I believe that new opportunities will continue to emerge in this industry; it is just thatThis opportunity cannot be anticipated by investors,Instead, it should be the more specialized experts and entrepreneurs within the field who inform us of remaining opportunities, after which we investors make judgments based on business logic.

Ma Rui: PINS Medical and Jingyu should not be classified as brain-computer interface (BCI) technologies, but rather as deep brain stimulation (DBS) systems. This indicates that currently commercialized products do not represent the most cutting-edge technology; it will take some time for the latest advancements to achieve commercialization.We remain bullish on measurement and regulation., potentially through novel approaches such as employing flexible electrodes or using very small electrodes to stimulate neurons, thereby achieving effects comparable to those of conventional deep brain stimulation (DBS). However, I concur with Mr. Wu Jialu’s view that, at the current stage, it is difficult for flexible electrode-based therapies for Parkinson’s disease to surpass PINS Medical. Therefore, entrepreneurs need to explore new therapeutic modalities or expand into the treatment of other diseases.

Li Zhe: We remain highly confident in innovation driven by future technologies. Looking at the technological advancements over the years, we have entered an era of rapid, compound, and superimposed innovation propelled by multidisciplinary integration. From a broader perspective, weOptimistic about the application of cross-disciplinary technologies, for instance, regarding future surgical procedures, we believe that the field will inevitably move toward minimally invasive and even non-invasive approaches. We are highly interested in any therapeutic technologies that can benefit patients and fundamentally address their conditions. Abroad, there are endovascular electrode technologies attempting to replace the traditional approach of electrode implantation via cortical access; this is extremely challenging, but it represents a novel perspective—Minimally Invasive Signal Measurement. From a therapeutic perspective, there is much worth exploring, such asInter-organ communication,Essentially, it involves neural stimulation pathways, which we interpret as neural electrical signals. Therefore, we have invested in a company dedicated to treating autoimmune and metabolic diseases through neural stimulation. Given the current prominence of GLP-1, can we leverage neural stimulation to provide a GLP-1 receptor modality, preferably via non-invasive external means? Neural electrical signaling in organ communication involves encoding and decoding processes, which can be explored along this line of thought. Our fund has consistently maintained close attention toGlobal Cutting-Edge Technologiesadvancements and breakthroughs, especially as these technologies enter the stage of actual clinical application, we believe this is the optimal time to take action. We willRapidly assess whether it has been validated, and pay attention to whether smarter peers in China are conducting similar or even more advanced research.

Lu Qinchao: We believe that in the early stages of development in the field of brain science, technology is continuously iterating. Currently, there are certain technical barriers in both hardware and software, primarily driven by competition between China and the United States, making the development of domestic technologies particularly crucial. Our foundation continues to focus on those stillUnmet Clinical Needs.Last year, we also invested in Brain Gamma Technology, which utilizes transcranial ultrasound to treat brain disorders; Metanovas, which provides auxiliary target prediction services for pharmaceutical companies; and Zhiran, a developer of implantable flexible electrodes. This year, we will invest in twoTherapeutic AreaTable of Contents, with particular attention to technologies capable of technological iteration and optimizing existing treatment methods, such as more miniaturizedElectrode, capable of reducing brain damage and side effects while treating serious diseases. Furthermore, we will alsoPrioritize diseases that currently lack effective treatments, such as depression and Alzheimer's disease., all of which can be subjected to brain stimulation via brain-computer interface (BCI) technology, combined with regulatory measures to achieve prevention, treatment, and monitoring. Age-related diseases are not limited to the brain but also include conditions affecting the eyes and other organs; we also pay attention to these areas.Cerebrospinal Fluid StimulationThere remain many uncharted territories in the application for patients with paralysis and coma; we close several brain science projects each year.

To build a joint incubation and investment platform dedicated to the commercialization of scientific and technological achievements, UP STEP Transformation Camp was jointly initiated by Chuangye Jielian, the custodian institution of the Shanghai Angel Investment Guidance Fund, in collaboration with early-stage investment firms. Centered on talent acquisition, the program addresses three critical deficiencies—business strategy, human resources, and capital—that frontier technology transfer projects often face in their early startup phase, thereby enabling enterprises to achieve sustainable operational capability.

The inaugural conversion camp, themed around brain-computer interfaces and brain science, invites researchers with forward-looking technical capabilities and management professionals with deep industry insights to apply.

Lu Qinchao, Founding Partner of Danlu Capital; Li Zhe, Managing Partner of Proxima Ventures; Ma Rui, Partner at FreeS Fund; and Wu Jialu, Founding Partner of Shicui Capital—partners from investment firms already active in the brain science sector—will all join as incubation partners to share their insights.