Eargo Secures $52 Million Series D Funding to Advance Open-Fit Hearing Aid Innovation and Files for IPO

VCBeat (WeChat ID: vcbeat) has learned that Eargo recently completed a $52 million Series D financing round. The company will use the funds to accelerate product innovation, drive market expansion in the United States, and enhance user experience.

This round of financing was led by Future Fund, with participation from New Enterprise Associates (NEA), Schwab Institutional, Nan Fung Life Sciences, and Maveron.

In the United States, approximately 48 million people suffer from hearing impairment and require hearing aids; however, with the exception of certain Medicare Advantage plans, insurance companies do not provide reimbursement for hearing aids.

Eargo is a health technology company headquartered in California, USA. Founded in 2013, it is dedicated to the design, manufacturing, and marketing of premium hearing aids. Reportedly, in June 2015, the company secured $13.6 million in Series A financing from nine investors, including Maveron, Crosslink Capital, and Dolby Family Ventures. In December 2015, it raised $25 million in Series B financing, led by NEA.

Unlike many other in-ear hearing aids, the Eargo Neo is an open-canal device that is smaller and more discreet than traditional in-the-ear models. Its miniature speaker is encased in medical-grade silicone fibers, allowing natural bass to flow freely into the ear canal while reducing ambient noise. This design enhances user comfort by eliminating the occlusion effect commonly associated with conventional hearing aids. Additionally, the Eargo Neo features rapid charging capabilities, providing up to one week of standby time on a single charge.

Eargo Neo Product Image (Image source: company website)

The newly launched Eargo Neo is the company’s third high-tech hearing aid, priced at $2,550. The first model, Eargo Plus, was released in 2017, followed by Eargo Max the next year, which was named one of the Best Inventions of 2018 by TIME magazine. Compared with its two predecessors, Eargo Neo further enhances sound comfort and noise reduction performance. It features four built-in sound profiles that can be switched effortlessly with a double-tap on the device, and adds personalized customization options, allowing wearers to experience full, rich sound.

Eargo CEO Christian Gormsen stated, “We are committed to building a leading brand in the hearing health sector, offering consumers better choices for their hearing care.”

The Future Fund is Australia’s sovereign wealth fund. It is dedicated to investments in the real estate market, infrastructure, commodity futures, and utilities.

New Enterprise Associates is a venture capital firm investing in technology and healthcare, headquartered in California, United States. Since its establishment in 1977, the firm has managed over $19 billion in capital. To date, it has made 1,526 investments.

Schwab Institutional is an investment advisory services company headquartered in San Francisco, California.

Nan Fung Life Sciences, known in Chinese as 南丰生命科学, is a venture capital firm headquartered in Hong Kong.

Maveron is a venture capital firm headquartered in California, USA, primarily providing Series A and seed-stage financing. Founded in 1998, the firm currently maintains offices in San Francisco and Seattle.

(Compiled by: Feng Yutong)