BrainCo is using non-invasive brain-computer interfaces and AI signal decoding as its answer to implant-led neural technology, according to Indian Express.

The Hangzhou company has raised 2 billion yuan, or $280 million, in a round co-led by IDG Capital and Walden International, according to the report.

BrainCo was also described as part of China's official "six little dragons" group of technology startups.

BrainCo Builds Non-Invasive BCI Devices

BrainCo was founded in 2015 after spinning out of Harvard Innovation Labs, according to the report.

The company develops prosthetics and wearable devices that use brain-computer interface technology, with a focus on non-invasive systems rather than brain implants.

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

The report said the technology is still early, with BCI startups drawing far less funding than AI companies, even as recent work has helped people with conditions such as amyotrophic lateral sclerosis type, communicate and play video games using neural data.

Nyx He, BrainCo partner and senior vice president, told Bloomberg that 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.

Indian Express cited the Bloomberg interview.

FDA-Approved Bionic Hands Lead The Product List

BrainCo's products include bionic hands, sleep aids and headsets for neurological disorders.

Its 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, according to the report.

He said BrainCo's bionic-hands business is seeing much bigger growth than last year in the Bloomberg interview.

The company account cited by the outlet says BrainCo's sleep aid applies mild electrical stimulation linked to stress-relief neurochemicals.

The report presented that product as separate from the company's bionic-hand business and neurological-disorder headset work.

The report said BrainCo is developing a BCI-centred treatment intended to replicate the appetite-suppressing effects of GLP-1 weight-loss drugs.

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

BrainCo wants to begin with users who need BCI technology most, including amputees in markets covered by insurance, according to the report.

The company 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

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

BrainCo developed a dry electrode sensor to capture neural data and uses an AI algorithm to decode it, according to the report.

Jefferies' July 8 note, cited by Indian Express, said 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.

BrainCo says it does not collect customer data stored on users' devices, according to the report.

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, according to the report.

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

Chinese regulators recently approved what Neuracle Medical Technology called the world's first minimally invasive BCI device for commercial use, according to the report.

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, according to the report.

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.

Chinese authorities are also enabling BCI startups to work with hospitals and universities, widening access to patients and neurosurgeons, according to the report.

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.