Neuralink: Elon Musk's Brain Implant Startup Secures Additional $43M in Quiet Funding Round

Neuralink Secures $43 Million in Venture Capital Funding

Neuralink, the pioneering company founded by Elon Musk that specializes in implantable chips to read brain waves, has successfully raised an additional $43 million in venture capital, as revealed in a recent filing with the SEC.

According to the filing, published this week, the company has expanded its prior funding round, led by Peter Thiel’s Founders Fund, from $280 million to a total of $323 million as of early August. A total of 32 investors contributed to this latest funding effort.

While Neuralink has not publicly disclosed its recent valuation, a June report by Reuters suggested the company was valued at approximately $5 billion following private stock transactions. Established in 2016, Neuralink has created a device akin to a sewing machine that can implant ultra-thin threads into the brain. These threads connect to a custom-designed chip equipped with electrodes that can capture data from clusters of neurons.

Although brain-signal-reading implants have been around for decades, Neuralink distinguishes itself by offering wireless technology and an increased density of implanted electrodes. In May, Neuralink received FDA approval for human clinical trials, having previously seen its application rejected. The company commenced its first human trials under an investigational device exemption granted by the FDA.

However, Neuralink faces increasing scrutiny over allegations regarding a toxic workplace culture and unethical research practices. A January 2022 article in Fortune highlighted claims from anonymous former employees who spoke of a “culture of blame and fear.” They noted that Musk often undermined management by encouraging junior staff to communicate issues directly to him. By August 2020, only three of the original eight founding scientists remained at the company, a situation described by Stat News as stemming from “internal conflict,” where hurried timelines clashed with the measured pace of scientific research.

In 2022, the Physicians Committee for Responsible Medicine (PCRM) accused Neuralink and its former research partner UC Davis of mistreating monkeys used in testing. The allegations included subjects experiencing psychological distress and chronic infections due to surgical procedures. Reports from Reuters and Wired suggested that pressure from Musk for rapid results may have led to complications during electrode installations, including instances of partial paralysis and brain swelling.

For nearly a year, Neuralink was under investigation by the U.S. Department of Agriculture (USDA) concerning animal welfare violations. Ultimately, the USDA found “no evidence” of breaches during the trials, aside from a previously reported incident from 2019. Nonetheless, the PCRM has challenged the conclusions of this investigation.

As of November 2023, U.S. lawmakers have requested the SEC to investigate Neuralink for failing to disclose details surrounding the deaths of at least a dozen animals that were surgically implanted with its devices.