Musk’s Neuralink valued at $5B despite lengthy path to market.

Neuralink’s Valuation Soars to $5 Billion

Neuralink, Elon Musk’s brain implant startup, has seen its valuation skyrocket to $5 billion based on privately executed stock trades, according to five sources with knowledge of the matter. This is a significant increase from its $2 billion valuation just two years ago. The boost in valuation comes ahead of Neuralink’s announcement that U.S. regulators have approved a human trial on its brain chip. While experts predict it could take several years for Neuralink to secure commercial use clearance, bullish investors have already made purchases that have driven up the company’s value.

“A study to assess safety and tolerability is in no shape or form valid to justify a $5 billion valuation.”

Musk has expressed grand ambitions for Neuralink, envisioning a future where healthy and disabled people alike can receive speedy surgical insertions of devices to treat obesity, autism, depression, and schizophrenia. However, the company faces challenges, including federal probes into its handling of animal research. Despite this, small investors have been eager to get a slice of the company owned by Musk, with demand for Neuralink stock being “tremendous,” according to Sim Desai, CEO of Hiive, an online platform where the shares are traded.

Investigations and Skepticism

Neuralink has come under scrutiny from U.S. lawmakers after reports that its animal-research board may have violated conflict-of-interest regulations. The company is also being investigated by the law enforcement arm of the U.S. Department of Agriculture for potential animal-welfare violations. Some biomedical experts are skeptical of Neuralink’s valuation, calling it “bonkers” based on how early the brain implant is in its clinical development.

• Neuralink’s last known fundraising in 2021 raised $205 million at an approximately $2 billion valuation.
• Recent stock sales have been to relatively small investors, with the maximum amount sought for the Neuralink shares marketed for sale at a $7 billion valuation being just $500,000.
• Neuralink’s valuation jump in secondary trades is in sharp contrast to other startups, with about 85% of pre-IPO companies currently valued in secondary trades at an average discount of 47% to their last funding round.