Chinese brain-computer interface startup Gestala secures $21M in funding two months after launch

While Elon Musk’s Neuralink and OpenAI-backed Merge Labs continue advancing brain-computer interface, or BCI, technology in the United States, Chinese serial entrepreneur Phoenix Peng is building competing efforts through two startups of his own: NeuroXess, which focuses on implantable BCI systems, and Gestala, a newer company working on non-invasive ultrasound-based brain-computer interfaces.

Gestala has raised $21.6 million, or CN¥150 million, only two months after its launch, at a valuation estimated between $100 million and $200 million, founder and CEO Phoenix Peng said.

The funding 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 added that the round was heavily oversubscribed, with investor commitments exceeding $58 million.

According to Peng, this marks the largest early-stage funding round in China’s BCI sector. The company plans to use the capital for research and development, to grow its team from 15 employees to around 35 by the end of the year, and to establish a manufacturing facility in China. The startup, which is just three months old, aims to complete its first-generation prototype by year’s end.

The global BCI industry is currently seeing a strong wave of investment in ultrasound-based technology. Gestala is the first ultrasound BCI startup in China, though it is not the first worldwide. In recent years, several ultrasound BCI startups have appeared in the U.S., including Merge Labs, which ranks among the largest in the field.

Peng believes ultrasound could become the next major generation of brain-computer interface technology, offering the possibility of wider, whole-brain access and new methods for interacting with neural activity.

He said non-invasive ultrasound may help solve one of the biggest obstacles to wider BCI adoption: the risks that come with brain surgery. Compared with implanted electrode systems, the technology can observe a broader portion of the brain, including deep neural circuits. By using phased-array ultrasound, the system can also stimulate or suppress neural activity with precision and without requiring surgery, he explained.

Despite growing geopolitical tensions, Peng said he still hopes China and the U.S. can work together on deep-technology research.

“Both countries bring different strengths,” Peng said. “China offers large-scale clinical research capacity and efficient supply chains, while the U.S. has world-class scientific talent.” He added that joint efforts could also concentrate on building large clinical datasets to support neuroscience research globally.

Gestala is examining several possible applications for its technology. On the medical side, chronic pain management is the company’s lead program. Peng said chronic pain affects large populations in both China and the U.S., and existing academic research suggests that ultrasound stimulation can significantly reduce pain levels.

The startup is also investigating uses in mental health conditions, including depression, PTSD, autism, and OCD, as well as in stroke rehabilitation. Other longer-term areas of focus include Alzheimer’s disease, essential tremor, and Parkinson’s disease. Altogether, the company is researching six to eight possible indications, though most are still at the early research phase rather than in clinical testing.

Gestala says its edge over global competitors comes from speed and scale. By leveraging China’s integrated manufacturing ecosystem, the startup believes it can move from development to production more quickly than many international rivals.

The company is also working with major Chinese hospitals to speed up clinical trials at much lower costs — roughly 20% to 33% of the cost of similar studies in the U.S. or Europe. At the same time, Gestala is building what it describes as an “Ultrasound Brain Bank,” a large clinical dataset intended to train AI models to decode brain signals and support future neurological diagnostics.