SHANGHAI, March 11th, 2026 — The Brain-Computer Interface (BCI) industry in China is experiencing an unprecedented surge in attention. With a record 24 financing events in 2025 and the concept being included in the Government Work Report for the first time during the 2026 "Two Sessions", the sector stands at a pivotal moment. As it navigates a dual breakthrough in technology and commerce, key questions arise: which segments will first achieve real-world application, and how will the competitive landscape evolve?
Recently, Vince Wen, Associate Director of CIC, shared his in-depth insights on these critical issues in an exclusive interview with Cailian Press, dissecting the latest investment trends and breakthrough directions for BCI.
Here are the key takeaways from the interview:
Capital Flows: From "Conceptual Investment" to "Deliverable Outcomes"
The financing momentum for China's BCI industry is unequivocally upward. From 2013 to 2025, the number of financing events fluctuated but rose overall, peaking at a record 24 in 2025. The first two months of 2026 have already seen several publicly disclosed fundraises involving companies like Zhiran Medical, BrainCo, Microsyne Medical, and Arfysica Innovation. "Overall, capital has not retreated from the BCI sector; it continues to maintain its allocation intensity," Vince observed.
However, a critical analysis of investment rounds reveals that the industry remains in its early stages, with the majority of funding concentrated in pre-Series C rounds. The prevalence of Angel round investments indicates that capital is still largely betting on technology roadmaps and teams, rather than mature commercial cash flows.
Compared to previous years, the capital flow in 2025-2026 demonstrates a more pronounced technology and industrialization orientation. Vince notes that funding is now primarily coalescing around two types of enterprises with key characteristics:
For Invasive BCI Companies: The critical capability is possessing the ability to conduct registered clinical trials for invasive medical devices and being in an accelerated translation phase. As regulatory frameworks become clearer and clinical pathways are established, capital favors companies that can advance registered clinical trials, validate safety and efficacy, and demonstrate potential for medical application.
For Non-Invasive BCI Companies: The key is possessing the capacity for mass production and product commercialization. Since non-invasive BCIs don't require implantation, their structure is simpler and more amenable to standardized production, enabling faster productization and scaled manufacturing. Capital favors companies with proven mass production and delivery capabilities, coupled with the ability to expand into channels and application scenarios.
While capital also maintains interest in enterprises with innovative application scenarios or differentiated technological paths, investment decisions increasingly depend on verifiable clinical or delivery progress, rather than conceptual narratives.
Investment institutions maintain a cautiously optimistic yet long-term positive stance toward BCI development. Strategically, investors balance policy dividends and market imagination space—recognizing BCI's designation as a critical future industry direction—while shifting from conceptual speculation toward deep investment grounded in clinical evidence and technology deliverables. Priority is given to projects capable of achieving clear milestones in the short-to-medium term, reflecting heightened emphasis on certainty and risk control.
Regarding valuations, Vince highlighted a divergence. Headline companies securing large financings in 2026 typically command expectations of greater scale and capital market success. However, many projects still at Angel or Series A rounds may face more conservative valuations if they lack verifiable progress in clinical, regulatory, or delivery aspects. Furthermore, he noted a key difference between markets: "The U.S. market is more likely to assign a high premium based on long-term disruptive potential. The Chinese market, at its current stage, places greater emphasis on verifiable progress and certainty."
The Path to Breakthroughs: Medical Applications Leading the Way
Looking ahead, Vince believes the medical field is poised to be the core direction for initial breakthroughs by domestic BCI companies. This is driven by sustained policy support, increasingly clear expert consensus, and maturing clinical validation pathways. Notably, in March 2025, the National Healthcare Security Administration issued a guideline that, for the first time, established separate pricing items for BCI technologies, including implantation and removal fees for invasive BCIs and adaptation fees for non-invasive BCIs. This was followed in September 2025 by the announcement of the first national BCI standard, "Terminology for Medical Devices Using Brain-Computer Interface Technology", fostering high-quality and standardized development.
In the short to medium term, Vince anticipates the fastest development in the treatment of movement disorders with relatively clear pathogenesis. "The rationale is clear, the demand is relatively rigid, the efficacy evaluation metrics are quantifiable, the clinical pathway is easier to standardize, and it's simpler to integrate with existing rehabilitation systems to form scaled delivery," he explained.
At the core technology level, breakthroughs are expected in different areas:
Invasive BCIs: Likely breakthroughs in signal acquisition, decoding algorithms, and closed-loop stimulation methods. Key advances will occur in electrode materials, high-bandwidth transmission, minimally invasive implantation and fixation methods, and overall system manufacturing and quality systems.
Non-Invasive BCIs: Critical progress will hinge on high signal-to-noise ratio acquisition and anti-interference design, algorithmic adaptability to individual differences, and product formats suitable for a wide range of application scenarios, ensuring stable and replicable effectiveness in real-world settings.
Evolving Competitive Landscape
The emergence of these breakthroughs will fundamentally alter the competitive dynamic. "Once these breakthroughs occur, industry competition will shift from single-point technological leadership to competition in systemic capabilities," Vince asserted. "The companies that can translate hardware reliability, algorithm stability, clinical processes, and service delivery into a reproducible product system will be the ones to enter scaled commercial application faster."
Currently, China's BCI industry is in a phase of parallel exploration of technology routes and application scenarios. Multiple companies are deploying across invasive, semi-invasive, and non-invasive paths, resulting in a competitive landscape characterized by multi-point breakthroughs and parallel approaches. However, the high barriers to entry—requiring long-term technological accumulation, substantial R&D investment, complex clinical trials, and multidisciplinary collaboration—mean that the ability to translate technological advantages into tangible products with proven clinical benefits will be the critical differentiator.
As technology matures and industry standards improve, Vince predicts that resources will gradually concentrate among a few leading enterprises with core technological capabilities, clinical validation foundations, and engineering proficiency. The industry is expected to evolve from its current multi-path exploration phase towards a more centralized pattern dominated by key players. After achieving initial clinical validation and standardization in the medical field, these leaders will be well-positioned to extend into more indications and applications. Furthermore, the application boundaries of BCI technology may progressively expand into broader fields such as consumer electronics, industrial applications, entertainment, and even defense, inviting new players into the arena.
Part of the views in this article were published in Cailian Press: The "sexy" narrative of the brain-computer interface project with a financing of over 5 billion yuan has been upgraded.
Cailian Press Report: Shi Shiyun; Executive Editor: Xu Hong
About CIC
CIC is a professional consulting firm offering tailored end-to-end support across the full investment and financing lifecycle. The firm boasts a world-leading track record in guiding landmark first-in-sector IPOs across global markets, alongside unrivaled reach and in-depth coverage capabilities across specialized niche market segments.
CIC helps enterprises refine scalable business models and craft compelling capital narratives to enable seamless access to global capital markets, while serving as a trusted due diligence partner to investment institutions. It delivers granular industry insights and direct access to subject matter experts, empowering clients to identify high-value opportunities and mitigate critical risks effectively.
Media Contact
marketing@cninsights.com