How to Invest in Synchron: Your Ultimate Guide
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Recently making waves in the neuroscience landscape, Synchron aims to bridge the gap between humans and machines, striving to create innovative and life-changing neurotechnology. Co-founded by Dr. Thomas Oxley, Synchron has a formidable team with a broad background in neurology, biomedical engineering, and medical device development.
They recently secured a $75 million financing round, including contributions from the investment firms of Microsoft co-founder Bill Gates and Amazon founder Jeff Bezos. These tech billionaires are betting on the transition of Brain-Computer Interfaces (BCI) from scientific exploration to a thriving medical business, and their backing of Synchron is a testament to the company's potential.
Currently, Synchron only accepts investments from accredited investors. If they choose to go public through an Initial Public Offering (IPO), this could open up opportunities for wider public investment.
This blog post aims to guide you on how you might invest in Synchron, its potential for growth, and its promising future.
Table of Contents
What is Synchron?
Synchron, established in 2016, is a leading neurotechnology company aiming to pioneer the future of brain-computer interfaces. With its groundbreaking Stentrode™ technology, Synchron is driving forward the capabilities of neural interfaces, allowing patients with severe paralysis to control digital devices using their thoughts.
The team at Synchron brings together individuals who have made remarkable contributions to the field of neuroscience and medical device development. They're creating systems that could revolutionize the treatment of neurological conditions, increase patients' independence, and potentially transform the neurotech landscape.
Just as Synchron’s journey is commencing, the remarkable team and promising vision suggest a potential for a substantial impact and success. However, as with any groundbreaking technology, Synchron needs to navigate through regulatory hurdles and ethical concerns surrounding the use of brain-computer interfaces.
Synchron Funding Rounds
Synchron has successfully gathered $130M in total funding across five rounds. The latest, a Series C round, occurred on December 15, 2022. The company is backed by 23 investors, including Subversive Capital and Khosla Ventures, who participated in the recent round.
Keeping Synchron private enables the team to guide the company's long-term strategic vision, unburdened by the short-term pressures of shareholder expectations. Confidentiality in business strategies and financials provides a competitive advantage while avoiding the stringent regulatory scrutiny faced by public companies.
Moreover, the flexibility in fundraising options, including venture capital, private equity, and private investors, allows for diverse avenues of growth and expansion.
Essentially, by maintaining Synchron as a private company, the team retains considerable autonomy and freedom to direct the company's future.
What Makes Synchron Stand Out?
Synchron is not the only company developing brain-computer interfaces. They are also competing with Elon Musk co-founded Neuralink. However, what makes Synchron stand out is its unique approach to implanting its device into the brain .
Unlike other companies (like Neuralink) that require invasive open-brain surgery to implant electrodes into the brain tissue, Synchron uses a minimally invasive endovascular technique that delivers its device through a blood vessel in the neck. This reduces the risk of infection, bleeding, and damage to the brain, and also makes the procedure more accessible and affordable.
Synchron’s device, called the Stentrode, is a small metal mesh that expands inside a blood vessel near the motor cortex, the part of the brain that controls movement. The Stentrode can record electrical signals from the brain and transmit them wirelessly to an external receiver. The receiver then translates the signals into commands that can control a computer or other devices.
Synchron made history by securing the first Investigational Device Exemption (IDE) from the U.S. FDA in July 2021 for a permanently implanted Brain-Computer Interface (BCI). This groundbreaking approval, reached after a rigorous five-year application process, followed successful preliminary trials in Australia where four paralyzed patients were able to send text messages by thought alone, bypassing any need for manual typing.
How to Invest in Private Companies like Synchron
To invest in private companies like Synchron, you typically need “accredited investor” status. In the U.S., this signifies 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 rules help protect individuals from risking excessive amounts of their wealth on high-risk investments.
As an accredited investor, you may get a chance to invest in Synchron if the company opens up for investments.
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 Synchron. By purchasing shares in these funds, your money gets pooled with other investors' to support various companies, not just Synchron. 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 Synchron 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.
Conclusion on How to Invest in Synchron
To sum up, Synchron is on a groundbreaking journey to pioneer the future of neurotechnology. While there are no public investment options available today, the future might bring these opportunities, particularly if the company opts for an IPO.
Led by a dynamic team and equipped with a unique approach, Synchron presents a promising opportunity for those interested in exploring the rapidly evolving neurotech sector.
