Global Brain Science Market Trends Report 2016–2021: A Billion-Dollar Opportunity with 800+ Healthcare Companies

• Global investment and financing in the field of brain science have shown an upward trend over the past six years. In 2021, financing activities were primarily concentrated at the multi-million-dollar level, with a total of 110 deals recorded. A surge in large-scale financing also emerged, with the number of deals exceeding $100 million doubling. Investment hotspots gradually shifted toward early-stage projects at the intersection of brain science and biopharmaceuticals. The brain-computer interface (BCI) sector gained significant momentum and mainstream attention, with numerous standout companies emerging.

  
  

• In 2021, 24 neuroscience-biopharmaceutical companies went public globally, among which 12 were focused on the research and development of drugs for neurodegenerative diseases;

  
  

• In China, the national government officially launched the China Brain Project in 2016. Subsequently, 17 provinces and municipalities rolled out a series of policies to support brain science research. Between 2016 and 2019, 60 companies were established.

  
  

• In 2020, the COVID-19 pandemic erupted. As the brain was identified as the second primary target organ of SARS-CoV-2, countries worldwide intensified their research on the brain. In 2021, China’s neuroscience enterprises also entered a period of explosive growth in financing.

• Brain science, in a narrow sense, refers to neuroscience. It is research conducted to understand the changes at the molecular level, cellular level, and intercellular level within the nervous system, as well as the integrative functions of these processes within the central functional control system (Society for Neuroscience). In a broad sense, it is the science that studies the structure and function of the brain, including cognitive neuroscience and other related fields.

  
  

• According to CB Insights data, the global market size for brain health was $6.2 billion in 2020 and is projected to surpass $10 billion by 2024, positioning it as the next industry with the potential to deliver disruptive impact on human society.

  
  

• This report mainly focuses onThe Integration of Biopharmaceuticals, Medical Devices, and Digital Therapeutics with Brain ScienceEmbark on an analysis of the brain science industry, focusing primarily on neurodegenerative diseases as well as psychological and cognitive disorders.

• Globally, investment and financing in the field of brain science have shown an upward trend over the past six years; in 2021, there were181 casesFinancing Event, with an Amount Reaching Up to$6.764 billion. In 2021, the average financing amount per event was$37 millionSpecifically, excluding deals with undisclosed financing amounts, there were only two financings under $1 million in 2021. The majority of financings were concentrated in the tens-of-millions-of-dollars range, with 110 deals—twice the number in 2020 and three times that in 2019. As a result, 2021 recorded the highest total financing amount and the largest number of deals to date.

  
  

• In China, the field of brain science is also on the rise, with a total of completed in 202154 casesFinancing, totaling$1.32 billion(nearly RMB 8.6 billion). The financing landscape from 2016 to 2019 appeared somewhat lackluster. According to VBInsight, a total of 165 domestic brain science companies were identified, among which 60 were established between 2016 and 2019. This trend is closely linked to the official launch of the China Brain Project in 2016, which also explains the fluctuations in investment and financing during these years. In 2020, the outbreak of the COVID-19 pandemic spurred accelerated research on the brain globally, as the brain was identified as the second primary target organ of the novel coronavirus, thereby stimulating industry development. Consequently, financing amounts saw substantial growth starting in 2020; in 2021, domestic brain science companies entered a period of explosive financing activity.

  
  

  
  

• Currently, neuroscience companies are concentrated in Series A financing rounds and among publicly listed firms. This distribution is particularly pronounced in the neuroscience-biopharmaceutical sector, with 68 companies having completed Series A financing. New entrants continue to join the market, including36 companies were established within the past five yearsMeanwhile, some listed companies in the brain science and biopharmaceutical sectors are showing strong momentum; 50 of these firms were established between 2000 and 2010 and have been deeply engaged in the brain science industry for many years.

  
  

• In the field of brain science medical devices, 51 companies are at Series A funding stage, among which 40 are monitoring-focused enterprises. Their main product forms mostly include intelligent medical imaging software platforms, electroencephalogram (EEG)/event-related potential (ERP) equipment, and magnetic resonance imaging/functional magnetic resonance imaging (MRI/fMRI). For example, BoNao Medical, which opens the door to intelligent diagnosis of brain diseases, owns AccuBrain, a professional-grade precise imaging-assisted diagnostic tool and a cloud platform for auxiliary diagnosis in neurology.

• From 2016 to the end of 2021, a total of43 Deals Exceeding $100 Million, of which 18 occurred in 2021, twice the number of deals exceeding $100 million in 2019.

  
  

• Less commonly, eight companies completed Series A financing rounds exceeding $100 million, with four of these deals occurring in 2021 and originating from developers of precision medicines for brain diseases.Neumora, Developer of Therapies for Central Nervous System DiseasesWings Biotech, Developer of Targeted Gene TherapiesCapsida Biotherapeuticsand neurodegenerative disease therapy developersAtalanta Therapeutics, these are all neuroscience-biopharmaceutical companies. Given that the current financing rounds for neuroscience-biopharmaceutical enterprises are predominantly concentrated at Series A, it can be inferred that capital investment hotspots are gradually shifting toward early-stage projects in the neuroscience-biopharmaceutical sector.

  
  

• In the brain science and digital therapeutics sector, one company made it into the Top 10 brain science financings of 2021—Akili, Akili’s therapeutic approach is designed to directly activate the brain networks responsible for cognitive functions, thereby treating cognitive deficits and improving symptoms associated with neurological and psychiatric conditions, including attention-deficit/hyperactivity disorder (ADHD), major depressive disorder (MDD), autism spectrum disorder (ASD), and various inflammatory diseases.

24 Brain Science–Biopharmaceutical Companies Went Public in 2021; MicroPort Affiliates Once Again Spin Off for IPO Preparations

• In 2021, a total of 30 brain science companies went public, among which 24 were classified as brain science–biopharmaceutical enterprises. Specifically, 12 of these companies focused on the research and development of drugs for neurodegenerative diseases. Neurodegenerative diseases are caused by the loss of neurons and/or their myelin sheaths, leading to progressive deterioration and functional impairment over time. They can be categorized into acute and chronic neurodegenerative diseases. The former primarily includes cerebral ischemia (CI), brain injury (BI), and epilepsy; the latter encompasses Alzheimer’s disease (AD), Parkinson’s disease (PD), Huntington’s disease (HD), amyotrophic lateral sclerosis (ALS), various types of spinocerebellar ataxia (SCA), and Pick’s disease, among others.

  
  

• In 2021, five brain science–device companies went public; notably,MicroPort GroupRe-Splitting Pre-IPO Plans to Focus on NeurointerventionalMinimally Invasive Brain ScienceSubmitted its prospectus to the Hong Kong Stock Exchange on December 28, 2021. According to the prospectus, MicroPort NeuroTech is the only Chinese company among the top five players in China’s neurointerventional medical device market.

Brain-Computer Interface (BCI)

• Brain-inspired intelligence is an inevitable path in the development of AI technology. Its core lies in developing artificial intelligence products by simulating the human brain’s thinking and computational mechanisms, thereby achieving more complex and precise calculations with lower power consumption while reducing reliance on big data. Brain-computer interfaces (BCIs), on the other hand, enable direct control of external devices by the brain through information exchange between the brain and the device, bypassing the human peripheral nervous system.

  
  

• In recent years, the field of brain-computer interfaces has frequently appeared in articles across major medical media outlets, while also giving rise to numerous standout companies, such as the one founded by Tesla CEO Elon MuskNeuralink; also founded by the first Chinese team selected for the Harvard Innovation LabBrainCo; competing with Abbott, Boston Scientific, and MedtronicNeuroPace. According to a report by VCBeat Research Institute, the global BCI industry witnessed a cumulative total of148 casesInvestment and Financing Events. The distribution of the total number of investment and financing events by year reveals that 2016 marked a pivotal breakthrough for the global brain-computer interface (BCI) industry, with the number of such events increasing by 89% year-over-year.

China's Brain Science Development Policy

• The growing prominence of brain science in recent years is evident from the emphasis placed on it by governments worldwide. The U.S. government took the lead by proposing a brain science initiative in 1989, followed by the European Union’s launch of the Human Brain Project in 2013. Japan, South Korea, and Australia have also followed suit.

  
  

• Similarly, China has elevated brain science research to a national strategic priority, officially launching the China Brain Project (Brain Science and Brain-Like Intelligence Technology) in 2016. Subsequently, a series of policies have been frequently introduced at the national level to support brain science research. Various provinces and municipalities across China have also issued relevant policies on brain science. According to VBInsight, there are a total of provincial-level policy documents related to brain science.52 Items。

More reports, including the "AI + Drug Discovery Value Trends Report" and the "Digital Mental Health Value Trends Report," will be released soon. Stay tuned.