Investment in brain–computer interface (BCI) technology is accelerating worldwide and a new Chinese startup is quickly gaining attention. Gestala has raised $21.6 million (CN¥150 million) just 2 months after its launch, reaching a valuation estimated between $100 million and $200 million. The company was founded by serial entrepreneur Phoenix Peng, who is also behind another BCI-focused firm, NeuroXess.
The funding round was co-led by Guosheng Capital and Dalton Venture, with participation from Tsing Song Capital, Gobi Ventures, Fourier Intelligence, Liepin and Seas Capital. The round was heavily oversubscribed, with investor commitments exceeding $58 million. Peng said the funding will support research and development, expand the team from 15 to about 35 employees by the end of the year and help build a manufacturing facility in China. The 3-month-old startup also aims to complete its first-generation prototype by the end of the year.
The global BCI sector is currently seeing strong interest in ultrasound-based technology. Gestala is the first ultrasound BCI startup in China, though similar companies have appeared internationally, including Merge Labs. Peng believes ultrasound could represent the next stage of BCI development by enabling wider access to brain signals and offering new ways to interact with neural activity. Unlike implant-based systems such as those being developed by Neuralink, ultrasound technology does not require brain surgery. According to Peng, the approach can monitor larger areas of the brain, including deep neural circuits and can stimulate or suppress neural activity using phased-array ultrasound.
Despite geopolitical tensions, Peng hopes the U.S. and China can continue collaborating on advanced technology research. “Both countries bring different strengths,” Peng said. “China offers large-scale clinical research capacity and efficient supply chains, while the U.S. has world-class scientific talent.” Gestala is currently exploring several applications for its technology. Chronic pain management is its main medical focus, while research is also underway for mental health conditions such as depression, PTSD, autism and OCD, as well as stroke rehabilitation. Future targets include Alzheimer’s disease, essential tremor and Parkinson’s disease. The company is studying 6 to 8 possible medical uses, though most are still in early research stages. Gestala is also partnering with major Chinese hospitals to conduct clinical trials at about 20% to 33% of the cost seen in the U.S. or Europe, while developing an “Ultrasound Brain Bank” dataset to train AI models for decoding brain signals and supporting neurological diagnostics.
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