Elon Musk is at it again. Neuralink, Musk’s brain implant startup, has reached a valuation of $5 billion according to Reuters citing sources familiar with the matter.
Neuralink was previously valued at around $2 billion following a round of private fundraising two years ago, but a series of recent stock purchases by employees and early backers turbocharged the valuation.
Then, the company announced in May that US regulators had approved a human trial of its brain chip implant.
In fact, Neuralink shares have been marketed privately to investors in recent days at a $7 billion valuation, equivalent to $55 per share, according to an email obtained by Reuters. However, it is unconfirmed whether anyone bought shares at that price.
Neuralink is Musk’s latest grand design. He envisions a chip that would allow for quick surgical procedures to treat conditions such as autism, depression and schizophrenia. The chips could also be used for web surfing or even telepathy, to hear him tell it.
Unsurprisingly, a Neuralink executive has offered more modest objectives, like allowing paralyzed patients to communicate through computerized text without typing.
Looking ahead, it’s likely to be years before Neuralink hits the market. Reuters cited Kip Ludwig, the former program director for neural engineering at the US National Institutes of Health, who said he "optimistically" expects Neuralink to take at least 10 more years to reach commercialization.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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