A Chinese startup developing non-invasive brain–computer interface technology has raised $21.6 million in early funding as global investment in neural interface systems accelerates.
Gestala, founded by entrepreneur Phoenix Peng, raised the capital just two months after launching. The funding values the company between $100 million and $200 million, Peng told TechCrunch.
The round was co-led by Guosheng Capital and Dalton Venture, with participation from Tsing Song Capital, Gobi Ventures, Fourier Intelligence, Liepin, and Seas Capital.
Peng said investor demand significantly exceeded the amount raised, with commitments totaling more than $58 million.
Ultrasound-Based Brain Interface Technology
Gestala is focused on developing brain–computer interfaces that use ultrasound rather than implanted electrodes.
The approach differs from companies such as Neuralink and Merge Labs, which are developing implantable BCI systems that require surgery.
Gestala’s technology uses phased-array ultrasound to monitor and stimulate brain activity without invasive procedures.
Peng said this method could allow researchers to interact with deeper neural circuits and access larger areas of the brain compared with some existing approaches.
He added that avoiding brain surgery could remove one of the major barriers to widespread adoption of brain–computer interface technology.
The company expects to complete its first prototype by the end of the year.
Rapid Growth In China’s BCI Sector
Gestala’s funding round represents the largest early-stage investment in China’s brain–computer interface sector, according to Peng.
The company currently has about 15 employees and plans to expand the team to roughly 35 people by the end of the year.
The new funding will support research and development as well as construction of a manufacturing facility in China.
The startup is part of a broader wave of investment in ultrasound-based neural interface systems.
Several companies in the United States are also exploring similar technologies, including Merge Labs.
Medical Applications Under Study
Gestala is initially focusing on chronic pain treatment as its lead medical application.
Chronic pain affects large populations in both China and the United States, and Peng said previous academic studies suggest ultrasound stimulation may help reduce pain symptoms.
The company is also studying other neurological and mental health applications.
These include treatments for depression, post-traumatic stress disorder, autism spectrum conditions, and obsessive-compulsive disorder.
Researchers are also investigating potential uses in stroke rehabilitation.
Longer-term research areas include Alzheimer’s disease, essential tremor, and Parkinson’s disease.
The company said it is exploring six to eight potential medical indications, most of which remain in early research stages rather than clinical trials.
China’s Manufacturing And Clinical Research Advantages
Peng said Gestala believes it can move from development to production faster than competitors by using China’s manufacturing ecosystem.
He said the company is also working with major Chinese hospitals to accelerate clinical studies.
Clinical trials in China can cost between 20% and 33% of similar trials conducted in the United States or Europe, according to the company.
Gestala is also developing what it calls an “Ultrasound Brain Bank,” a large dataset of brain signals that can be used to train artificial intelligence models.
The data could help researchers decode neural activity and support future neurological diagnostics.
Founder Sees Opportunity For Global Collaboration
Despite geopolitical tensions between the United States and China, Peng said collaboration between the two countries could still benefit neuroscience research.
“Both countries bring different strengths,” he said.
“China offers large-scale clinical research capacity and efficient supply chains, while the U.S. has world-class scientific talent.”
Peng said joint research efforts could help build large clinical datasets and accelerate the development of brain–computer interface technology.
Featured image credits: Needpix.com
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