China-based BrainCo is emerging as a key player in the brain-computer interface (BCI) industry, taking a different approach from Elon Musk’s Neuralink by focusing on non-invasive devices instead of brain implants. The startup is betting that wearable neural technology will make BCI more accessible, affordable, and suitable for mass-market adoption.
Founded in 2015 as a spin-off from the Harvard Innovation Labs, BrainCo is headquartered in Hangzhou, China, and is part of the country’s official “six little dragons” group of technology startups. The company develops BCI-powered prosthetics and wearable devices that convert brain signals into commands, allowing users to control external devices through thought without the need for surgery.
BrainCo has introduced several products, including bionic hands, sleep aids, and headsets designed to support people with neurological conditions such as autism, ADHD, and insomnia. Its FDA-approved bionic hands read neural and muscular electrical signals from amputees and translate them into finger movements. The company says demand for its bionic hand business has grown significantly compared to last year.
The startup is also developing a BCI-based weight management treatment that aims to replicate the appetite-suppressing effects of GLP-1 drugs. The product is expected to reach the market in 2027 or 2028.
“We are not just making hands. We believe BCI and embodied intelligence can combine and we think robots controlled by the human brain will be a focus going forward,” said Nyx He, Partner and Senior Vice President at BrainCo.
Recently, BrainCo raised 2 billion yuan ($280 million) in a funding round co-led by IDG Capital and Walden International.
Despite its progress, the company faces challenges in accurately capturing and decoding brain signals from outside the skull. To overcome this, BrainCo has developed proprietary dry electrode sensors supported by AI-powered decoding algorithms. Industry analysts believe these technologies, along with the company’s commercialization efforts, provide a competitive advantage.
Beyond serving amputees and patients with neurological conditions, BrainCo plans to expand into consumer electronics and license its BCI platform to other companies. The startup also states that customer data remains stored on users’ devices, with only certain information, such as concentration scores, saved locally on specific products.
China continues to strengthen its BCI ecosystem through policy support, regulatory reforms, and industry collaboration, positioning the technology as a strategic future industry alongside other startups including StairMed, NeuroXess, Gestala, and Neuracle Medical Technology.
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