Target Company Overview

Heze Technology (Symbionics), a startup focused on brain-computer interface (BCI) technology, has successfully raised 30 million yuan in its angel round of financing, fully funded by Kunlun Capital. Established in 2023, Heze Technology is at the forefront of developing flexible brain-computer interface devices. This marks a significant advancement in BCI technology, commemorating the 50th anniversary since the original concept of BCIs was introduced in 1973. Historically, progress in BCI technology was hampered by technical limitations; however, advancements in material science and nanotechnology have led to the development of next-generation BCIs capable of facilitating direct communication between carbon-based life forms and silicon-based devices, expanding the boundaries of human cognitive capabilities.

BCI technology exhibits vast applications across various fields, including healthcare, rehabilitation, and entertainment. In the medical field, BCIs can be applied in neural prosthetics and neuro-regulation, assisting individuals with disabilities and neurological disorders to regain normalcy in their lives. In entertainment, BCIs can enhance virtual reality and metaverse experiences, providing consumers with immersive interactions. Furthermore, the potential applications of BCIs extend to military, education, industrial, and security sectors. BCIs can be categorized into non-invasive and invasive types, with non-invasive systems showing early developments but facing limitations due to natural anatomical barriers, leading to signal resolution constraints. Conversely, invasive BCIs, which originated from clinical practices utilizing hard Utah electrodes in the 1990s, have demonstrated various capabilities while also revealing issues such as immune rejection and signal drift, presenting challenges in addressing market demands.

Industry Overview of Brain-Computer Interfaces in China

China has been increasingly proactive in developing brain-computer interface technologies, receiving substantial government support, illustrated by the launch of the 'China Brain Project' in September 2021. This initiative encompasses 59 research areas, including the study of flexible BCIs, showcasing the country's commitment and investment in advancing BCI research. According to IMARC Group, the global BCI market reached $1.5 billion in 2021, while the domestic BCI industry was valued at around 1 billion yuan, accounting for less than 10% of the global market. This disparity indicates significant growth potential within China's BCI sector.

The global BCI market is poised for expansion, with projections estimating the market size to reach $3.3 billion by 2027, further highlighting the ample opportunities for growth and innovation within this field. As the industry evolves, the need for advanced technologies capable of bridging human and machine interactions will become increasingly critical, particularly in sectors that require seamless communication and efficiency.

Heze Technology's development aligns well with these industry trends, as their flexible electrodes have shown the ability to collect high-quality neural signals stably over long periods. This groundbreaking capability addresses many limitations associated with traditional rigid electrodes, paving the way for more effective applications in clinical and research settings.

Rationale Behind the Investment

Investing in Heze Technology represents a strategic move by Kunlun Capital, as it seeks to improve the quality of life for individuals with disabilities through advanced BCI technology. Given the transformative potential of BCIs to alter the interaction paradigm between humans and machines, this investment supports a technology with profound implications across various sectors. Heze Technology's innovations not only affirm the feasibility of BCIs but also promise significant societal benefits by enhancing human-machine synergy.

The funding raised in this round will be primarily allocated towards expanding the team, establishing foundational platforms, and refining technological products. This investment will further accelerate the progression of flexible BCI technologies, aimed at providing increased convenience and well-being for humanity.

Investor Information

Kunlun Capital, known for its venture capital investments, has a strategic focus on cutting-edge technologies that promise transformative societal impacts. The firm emphasizes the significance of working with teams that are not only leading in technological innovation but also capable of executing these advancements in local markets. By investing in Heze Technology, Kunlun Capital aligns itself with a vision of leveraging BCI technology strategically while facilitating a continuous evolution of innovative solutions in this rapidly expanding industry.

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From an expert perspective, investing in Heze Technology appears to be a commendable decision given the immense potential of brain-computer interfaces in modern society. The company operates within an industry that is rapidly evolving, with ample opportunity for growth, particularly in therapeutic applications that could profoundly affect the lives of many individuals suffering from disabilities or neurological disorders.

Furthermore, the technological advancements made by Heze Technology, particularly in flexible electrode development, position it favorably against competitors. By addressing critical issues associated with traditional electrode systems, this innovation could lead to more effective and long-lasting solutions in brain-computer interaction.

The experienced team behind Heze Technology, which includes pioneers in the field, also reinforces the company's credibility and competitive edge. Their deep academic and practical expertise provides a robust foundation for the company's ongoing research and development efforts.

Overall, the strategic investment in Heze Technology by Kunlun Capital signifies a commitment to advancing both technological capabilities and societal benefits through innovative brain-computer interfaces. This partnership has the potential to not only revolutionize human-computer interactions but also significantly contribute to improving quality of life through advanced medical applications.

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