Startups attract funding to expand sales of tests, tools to detect and
manage brain injuries and illnesses
By Brian Gormley
Sept. 11, 2017 7:30 a.m. ET
Venture capitalists have money in the brain.
After years of research and development, many startups have introduced money-making products or services aimed at conditions of the brain, attracting more capital.
Brain startups with revenue closed 26 venture financing rounds in the first half of the year, on pace to pass the high reached in 2015 of 44 financing rounds for revenue-generating brain companies, according to Dow Jones VentureSource,
These private companies are gaining traction serving a range of conditions such as depression, anxiety and concussions.
The percentage of investments in those ringing up sales is rising. In 2008 the portion of brain investments in startups that were generating revenue was 13%. By 2012 that figure had risen to 40%. Last year, there were 38 financings in revenue-making startups in the brain category, or 42% of the total. In the first half it reached 50%.