How to Invest in Neuralink: Your Ultimate Guide
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Neuralink, a pioneer in the neurotechnology space, is creating waves with its groundbreaking research and technological developments. Founded by Elon Musk, the company aims to develop high-bandwidth brain-machine interfaces for treating neurological conditions and enabling symbiosis with artificial intelligence. In this blog post, I'm going to explore how to invest in Neuralink, its potential for growth, and how you may consider investing in the company.
Neuralink is not currently publicly traded, which means you cannot invest directly in the company today. However, you may be able to invest in Neuralink directly in the private market if you qualify to be an accredited investor.
This scenario may change in the future if the company expands and Musk considers an IPO. Learn more about becoming an accredited investor below.
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What is Neuralink?
Neuralink was founded in 2016 with a vision to treat various neurological conditions and usher in a new era of human cognition. Its primary focus is to create devices that can be implanted in the human brain, facilitating the direct interaction between the brain and computers.
Neuralink cleared a major hurdle in May 2023, by earning FDA approval to begin human trials. While this could stimulate rapid development in the neurotechnology field, they remain a step behind Synchron. Synchron had made history in July 2021, by being the first to receive an Investigational Device Exemption (IDE) from the U.S. FDA for a permanently implanted Brain-Computer Interface (BCI).
However, it's essential to acknowledge that Neuralink's path hasn't been without its challenges. The company has faced ethical and regulatory concerns regarding its animal testing procedures and the potential risk that brain implants might pose to human rights and privacy.
Recent Achievements
Despite these hurdles, Neuralink has made some remarkable breakthroughs. One of the more notable examples includes enabling a monkey to play video games using only its mind. This breakthrough demonstrated the potential for brain-computer interfaces and opened up a wealth of possibilities for future applications.
How to Invest in Private Companies like Neuralink
To invest in private companies like Neuralink, one usually requires “accredited investor” status. In the U.S., this means having a net worth exceeding $1 million (excluding the value of your primary residence) or an income exceeding $200,000 in each of the two most recent years (or $300,000 combined income if married) and a reasonable expectation of the same income level in the current year.
These regulations protect individuals from risking too much of their wealth on high-risk investments.
As an accredited investor, you may have an opportunity to invest in Neuralink, if the company allows it.
Can Individuals Invest in Large Private Companies?
However, it's important to know that large private companies do not often seek investment from individual accredited investors. The primary reason for this is that fundraising from many individuals can be a complex and time-consuming process, especially compared to raising funds from a few large sources such as venture capital firms or angel investment funds.
The fundraising process involves significant legal, financial, and logistical considerations. Therefore, dealing with fewer investors simplifies this process. Furthermore, venture capital firms and angel investors often provide more than just money. They can offer strategic advice, industry connections, and credibility, which can be beneficial for the company's growth.
A few large private investment funds offer opportunities for indirect investment in companies like Neuralink. By purchasing shares in these funds, your money gets pooled with other investors' to support various companies, not just Neuralink. It might not be direct investment, but it's a way to have a stake in their success.
You Must Have a Long-term Plan
Investments in private companies like Neuralink are also generally less liquid, meaning they cannot be sold until a “liquidity event,” such as a company sale or an IPO, happens. Therefore, patience and a long-term investment perspective are vital.
If you're still interested, you can learn more about becoming an accredited investor here.
Neuralink Funding
Neuralink has raised a total of $643M in funding over 7 rounds at the time of writing. Their latest funding was raised on Aug 7, 2023 from a Series D round.
This recent Series D round was spearheaded by Peter Thiel's Founders Fund, following Neuralink's first in-human clinical trial approval. Although the valuation for this round was not disclosed, the company's last known valuation was roughly $5 billion in June 2023, as per privately executed stock trades.
The company is funded by 16 investors (apart from Musk himself), with high-profile investors including Google Ventures, Peter Thiel's Founders Fund (as mentioned earlier), and OpenAI's CEO, Sam Altman.
The funding rounds have allowed the company to continue its R&D efforts and human trials.
When Will Neuralink Stock Be Available?
While it's difficult to predict a Neuralink IPO, you can follow Neuralink on Twitter and LinkedIn for updates.
Conclusion on How to Invest in Neuralink
Currently, it's not possible to invest directly in Neuralink via public markets. However, the future may hold opportunities for public investment if the company decides to go for an IPO. With their groundbreaking work in neurotechnology, Neuralink represents a fascinating prospect for potential investors.
