Andreessen Horowitz Invests in Brain Implant Startup Echo Neurotechnologies

Venture capital firm Andreessen Horowitz has entered the brain-computer interface sector by backing Echo Neurotechnologies Corp., a brain implant startup led by prominent neurosurgeon Edward Chang. The investment, part of a funding round reportedly amounting to about $50 million, marks a significant move into a growing industry currently dominated by Elon Musk’s Neuralink Corp.

The company, which is yet to be officially announced, was founded by Chang, who serves as the chairman of the neurosurgery department at the University of California, San Francisco (UCSF). According to sources familiar with the matter, the funding round may potentially increase in size. Documents filed with the California Secretary of State in December 2023 indicate that Chang is listed as the company’s registered agent.

Echo Neurotechnologies is based in the China Basin area of San Francisco and has already begun the process of hiring key personnel. A representative from Andreessen Horowitz declined to comment on the development, and Chang did not respond to inquiries regarding the company or its plans.

Brain-computer interfaces have gained substantial attention in recent years, particularly after Neuralink Corp. demonstrated its wireless implant, enabling a paralyzed man to control a computer and play games using only his thoughts. As other companies such as Synchron Inc. and Paradromics Inc. advance similar projects, investor interest in the technology continues to rise.

Chang has played a crucial role in this field by developing innovative brain implant technologies aimed at addressing conditions like chronic pain and severe depression. In 2023, he led a team that successfully used AI-driven brain implants to help a paralyzed woman communicate through a digital avatar. The procedure involved decoding the woman’s neural signals and converting them into spoken language via computer software, representing a major step forward in assistive communication technologies.

Brain-machine interfaces typically require surgical implantation of electrodes on or inside the brain to capture and interpret neural activity. The goal is to allow users to operate external devices such as computers and robotic limbs using mental commands. While clinical trials are ongoing at Neuralink and Synchron Inc. to improve mobility for paralyzed individuals, other companies are working on solutions to restore vision to those who are blind.

Though Neuralink initially drew most of the public spotlight, other players in the field have gradually gained attention. Precision Neuroscience Corp. and Science Corp. are among several companies exploring applications beyond mobility assistance, with a focus on enhancing cognitive and sensory functions. With Echo Neurotechnologies now in the mix and backed by Andreessen Horowitz, the competition within the sector is likely to expand further.