Elon Musk’s brain implant startup Neuralink, which was valued at close to $2 billion in a private fundraising round two years ago, is now worth around $5 billion based on privately executed stock trades described to Reuters by five sources with knowledge of the matter.
Following the trial’s approval, however, Neuralink shares were marketed privately to investors in recent days at a $7 billion valuation, equivalent to $55 per share, according to an email seen by Reuters. Reuters could not establish whether the seller found buyers for that price. The email cited the U.S. Food and Drug Administration’s approval of the clinical trial as grounds for the deal being “sweeter.
In Neuralink’s last known fundraising in 2021, it raised $205 million at an approximately $2 billion valuation, according to data provider Pitchbook. Some biomedical experts are skeptical. Arun Sridhar, a scientist and entrepreneur who specializes in neuromodulation, called Neuralink’s valuation “bonkers” based on how early the brain implant is in its clinical development.
The law enforcement arm of the U.S. Department of Agriculture has been investigating Neuralink for potential animal-welfare violations. Neuralink staff told Reuters last year that the company was rushing and botching surgeries on monkeys, pigs and sheep, resulting in far more animal deaths than necessary, as Musk pressured staff to receive FDA approval.