Neurotech

1. Between treatment and diagnostics

   Neurological disorders are the leading cause of disability adjusted life years (DALY) globally, with a higher incidence — and an equally larger burden on healthcare budgets — among the elderly population.

   With the average life expectancy now breaking into the 80s (a 10-year jump since 1960), neurotechs are looking to optimise early-stage detection of typically late-onset diseases such as Alzheimer’s and Parkinson’s.

2. Cyborg-like utopia?

   “We’re already cyborgs,” reads an Elon Musk tweet referring to increasing human-to-computer memory outsourcing. While simplistic, Musk’s observation points to an existing trend among emerging neurotech startups (including his own Neuralink): hardware-based business models.

   Brain-computer interfaces and (non-invasive) thought-controlled hardware — designed to extend neural capabilities to external devices — are among the most ambitious neurotech products on the market. But there are many barriers to address: heavy costs, ethical concerns, regulatory requirements and social distrust.

3. Going to trial

   Neurological trials are notoriously restricted when it comes to human subject research. While some companies have obtained regulatory approval to proceed with interventional trials, many requests still take a long time to be assessed without any assurance of a green light.

   Pre-revenue startups facing lengthy review processes will need to straddle keeping costs at bay and runways long enough, while retaining equity control. Unfortunately, public grants are still undersized compared to other healthcare niches.

4. Tailoring behaviour

   AI and ML-powered neurotechs have the capabilities to analyse large datasets to better tailor therapy regimens based on unique individual needs, as well as design personalised patient pathways — common amongst other digital health startups.

   Targeted therapy and AI-based diagnostics will likely be a key competitive advantage for neurotechs in the coming years, with a cautionary note on data privacy processes. However, these can be easily borrowed from more mature sectors.

Who early stage startups are up against