BrainCo Uses AI Decoding In Non-Invasive BCI Push After $280 Million Round

A Hangzhou brain-computer-interface startup is using non-invasive devices and AI decoding as its answer to implant-led neural technology.

The startup has raised 2 billion yuan, or $280 million, in a round co-led by IDG Capital and Walden International, according to Indian Express.

The same account placed it inside China's official "six little dragons" group of technology startups.

Non-Invasive BCI Devices Anchor The Product Line

Founded in 2015 after spinning out of Harvard Innovation Labs, the company develops prosthetics and wearable devices that use brain-computer interface technology, with a focus on non-invasive systems rather than brain implants, the outlet indicated.

Brain-computer interfaces process neural activity and translate it into commands for external devices.

The field remains early, and startups in it draw far less funding than AI companies.

Even so, recent work has helped people with conditions such as amyotrophic lateral sclerosis type communicate and play video games using neural data.

Bloomberg quoted partner and senior vice president Nyx He saying some neurological conditions may require going into the brain, while many other use cases can be served by lower-risk and more accessible non-invasive methods.

FDA-Approved Bionic Hands Lead The Product List

Its products include bionic hands, sleep aids and headsets for neurological disorders.

Indian Express notes that the bionic hands have been approved by the US Food and Drug Administration and work by reading an amputee's neural and muscular electrical activity before translating intended movements into finger motion.

In the Bloomberg interview, He described the bionic-hands business as seeing much bigger growth than last year.

A company account cited by the outlet states that the sleep aid applies mild electrical stimulation linked to stress-relief neurochemicals.

The sleep product was presented separately from the bionic-hand business and neurological-disorder headset work.

The outlet also described a BCI-centred treatment in development that is intended to replicate the appetite-suppressing effects of GLP-1 weight-loss drugs.

He added that the weight-loss treatment is expected to reach the market in late 2027 or 2028.

Initial target users are people who need BCI technology most, including amputees in markets covered by insurance.

The startup also plans to expand gradually into medical conditions such as ADHD and depression and to target consumer electronics later.

AI Decoding Addresses Noisy Neural Data

Reading subtle neural activity from outside the skull is a main technical challenge for non-invasive BCI devices.

To address that, the company developed a dry electrode sensor to capture neural data and uses an AI algorithm to decode it.

A Jefferies note dated July 8 and cited by Indian Express found that non-invasive BCI systems still face signal-capture and interpretation limits.

The note also named invasive implants such as Neuralink products and ultrasound-based systems as promising frontiers, while attributing BrainCo's edge to its sensors, AI decoding algorithm and commercialisation record.

The company states that it does not collect customer data stored on users' devices, the outlet wrote.

Information such as concentration scores could be saved locally on focus-training devices.

China Sets BCI Targets For 2027

Chinese startups including StairMed, NeuroXess and Gestala are also pursuing BCI-powered devices.

StairMed and NeuroXess rely on brain implants, while Gestala uses ultrasound-based approaches.

Indian Express wrote that Chinese regulators recently approved what Neuracle Medical Technology called the world's first minimally invasive BCI device for commercial use.

The device is designed to help people with spinal cord injuries regain some hand function.

China named BCI as a strategic future industry in its latest Five-Year Plan.

Seven Chinese ministries issued an implementation plan in August 2025 that targets key technological breakthroughs by 2027 and lowers regulatory and clinical barriers for non-invasive rehabilitation technologies.

Authorities in China are also enabling BCI startups to work with hospitals and universities, widening access to patients and neurosurgeons.

Health authorities created a separate insurance category for BCI last year, a step experts cited by the outlet said could help the technology scale.

The remaining public-record gaps are BrainCo's current revenue, bionic-hand shipment volumes, clinical trial results for the weight-loss treatment, product pricing and independent validation of its AI decoding accuracy.