The concept of brain-machine or brain-computer interactivity (BMI/BCI) has long intrigued researchers across the globe. But it gained mainstream attention only after innovation mogul Elon Musk’s brain-chip startup Neuralink was in the spotlight in 2019 when the team live-streamed a technology presentation.
Interestingly, Blindsight, an experimental implant device developed by the company, recently got US FDA approval. Neuralink said the device would enable “even those blind from birth or lost their optic nerve to see for the first time provided their visual cortex is intact” – that part of the brain responsible for receiving, processing and integrating visual data.
Closer home, neurotech or brain-controlled activation for different functions at consumer and industry levels is also catching up. The efforts of BITS Pilani alumni Siddhant Dangi and Deepansh Goyal are a case in point. They went through years of extensive research to make the core technology more accessible and multi-functional beyond medical or therapeutic usage.
In 2020, while the duo was still in college, they set up NexstemThe deeptech startup has developed a cost-effective BCI headset called Instinct and a supporting operating system (OS) to capture brain signals with minimum noise and near-medical precision.
The recordings are then processed to extract and categorize critical data features and digitalise the same, making them ready for research/innovation and commercial applications.
For context, brain signals are neural/neuronal activities detected in the human brain or peripheral nerves. Nexstem acquires these signals using electroencephalography (EEG), a non-invasive procedure and cuts the noise to ensure excellent output or data features. Understandably, the extracted features should strongly correlate with the incoming signals (for the action intended) for BCI/BMI data to work effectively.
Although Nexstem’s EEG headset and OS are in beta, the founders have applied for a patent for their proprietary BCI tech infrastructure. They also secured $3.5 Mn in November 2024 from InfoEdge, Gruhas, Zupee and the Smile Group to boost its existing tech stack and expand its IP portfolio.
Currently, Nexstem’s IP portfolio includes sensor technologies, advanced signal acquisition systems and a high-performance computing platform, all of which are patent-pending in India and can act as the cornerstone for BCI product development.
According to Dangi, the tech will enable companies to decode continuous brain activities so that one can read the general gist, a kind of thought-to-word process powered by EEG and ChatGPT-like large language models (LLM). It can also revolutionize the gaming industry, as games can adapt to real-time user perception.
The founder mentioned a horror game in development where the story mode and game design evolve based on a player’s response. Then there are mental health startups like Mave Health that can potentially use Nexstem’s tech stack to diagnose and treat different conditions.
Nexstem started licensing its IP portfolio about three months ago and catered to 14 companies, primarily from the US. These deals raked in about $850K, but the founders declined to reveal customer details due to non-disclosure agreements. The startup will monetize its EEG headkits and has signed deals with 50 beta users and 4 Business Partners.
Why Nexstem Pivoted From Prosthetics To Commercial Neurotech
For Siddhant Dangi, venturing into neurotech was far from a novelty. His visits to the Army Base Hospital in Delhii with his father, a military officer, shocked and pained the youngster as he witnessed the struggles of many who had lost their limbs, suffered from spinal cord injuries or damaged their nervous system.
The concept of brain-controlled artificial limbs was not in practice at the time. Even now, biomimicry or brain signal mapping for easy movement of artificial limbs is not frequent due to its complexity and the prohibitive costs of these ‘smart’ prosthetics.
In contrast, a regular (and more affordable) strap-cable artificial arm requires flexing one’s biceps for body-powered mobility but exhausts the muscles even more than a strenuous workout.
Moved by the plight of people who had lost their limbs, Dangi was determined to build better solutions. He met Goyal at BITS, Pilani, and continued his research. But by that time, the concept of bionic limbs had forayed into the mainstream.
In essence, bionics taps into the brain’s ability to send electrical signals down the spinal cord and a network of peripheral nerves to reach muscles, especially those in the arms and hands. These signals trigger muscle contractions, which move bones via tendons, enabling movement.
When an upper limb is amputated, the peripheral nerves are severed. However, research shows that the brain continues to send signals along these severed nerves for years, trying to command the now-missing limb. Based on this core concept, brain signals can be recorded and harnessed to control a prosthetic limb.
Inspired, Dangi and Goyal, then third-year computer science students, focused on brain-computer interfaces, aiming to ‘crack the arm’ and build something better. After all, the ultimate goal can be building a bionic arm trained and controlled by one’s mindHowever, there were challenges galore.
“During that journey, we realized that brain signals were clumsy, very difficult to work with and expensive to capture. The cheapest EEG system is $40K a piece, which would cost a prosthetic arm as much as $60K,” said Dangi. Further discussions with the doctors at the same Army Base Hospital convinced the duo that building better bionics would be formidable.
It was a pivot at the research stage, but the duo was undeterred, and the challenge was clear – developing affordable hardware capable of capturing near-medical-grade brain signals.
“We soon realized that experts in related fields would be better equipped to design advanced prosthetics. So, we shifted to something bigger – capturing, analyzing and fine-tuning brainwaves. Our goal was to make this technology accessible to anyone so that they could build anything using brain signals. By simplifying the process, we wanted to unlock endless possibilities for innovation, empowering people to create far beyond prosthetics,” said Dangi.
The hard work paid off when they developed an affordable EEG headset and the supporting software, and Nexstem was launched in 2020.
A Deep Dive Into Nexstem’s Niche Tech & Revenue Model
By 2021, the founders debuted their first product, the Nexstem V1 EEG headset. It was later upgraded to become the startup’s flagship, Nexstem Instinct, a wearable with 19 auto-adjusting, silver chloride-based active electrodes. These electrodes can cover every head shape and size and capture bio-signals from the brain, driving everything from muscle movements to complex mental processes such as thinking and learning, decision-making and emotion regulation.
Next, the startup’s proprietary software converts these raw bio-signals into usable digital data. However, the entire process posed a big challenge due to the high costs associated with top-grade EEG devices. To overcome cost constraints, the founders used brain signal-like simulations to test and optimize the algorithms until they achieved the desired results for interpreting brain signals accurately at minimum costs.
Instinct has integrated its hardware and software into a single platform, which comes with onboard AI, Edge computing capabilities and an intuitive companion app with multiple functions. The ecosystem also features software development kits (SDKs), APIs and pre-built BCI paradigms for applications like emotion detection and facial recognition. Plus, it provides a zero-latency, minimum-noise experience for accurate, large-scale analysis.
Once brain signals are acquired and processed, the digital output can be customized by end users for specific use cases and applications, thus laying a solid tech foundation for innovations to thrive. Aware of this broader role Nexstem can play, its founders are uber-focused on constantly improving its EEG headset and the tech ecosystem.
Its primary revenue stream currently hinges on licensing the BCI technology to enterprises, product innovators and researchers. It also plans to commercialize Instinct’s integrated hardware and software as a comprehensive development kit. As part of its growth roadmap, the team is preparing for the official launch of Instinct in the coming months and believes this all-in-one solution will drive transformative change in biosignal technology.
“Our immediate goal is to widen the reach of Nexstem Instinct, and we expect a strong response before its official launch next year. Instinct has tremendous potential, and we are fully committed to enhancing its adoption and unlocking its potential,” said Dangi.
The Road Ahead For Nexstem
Although brain-computer/brain-machine interfaces primarily took off with advanced bionics in mind, rapid development in EEG technologies has thrown open new horizons for commercial neurotech and in-depth therapeutic research.
San Francisco-based Emotiv, for example, sells affordable headsets and earbuds that use machine learning to decode brain signals and send the data wirelessly to cloud storage.
Another innovator, NextMind, has developed a device that is worn on the back of the head, allowing users to control computers with their thoughts. So far, people have used it to complete tasks like changing TV channels or unlocking virtual safes.
A quick look at the market estimates also reflects the growing interest. Globally, the bci market size is projected to reach $8.36 Bn by 2032 from $2.23 Bn in 2023, growing at a CAGR of 15.8%, according to S&S Insider.
Aware of the global potential, Nexstem is keen to explore the full potential of biosignals and expand its technology portfolio. A key focus will be launching advanced EXG (electroexpectogram) sensors to detect subtle changes in brain waves when a person is anticipating or expecting a specific stimulus or event. It differs from traditional electroencephalography (EEG), which measures the overall electrical activity of the brain.
It is also working to integrate transcranial alternating current stimulation, or tACS, into its Instinct platform. This non-invasive technique delivers gentle electrical currents through electrodes on the scalp to stimulate brain activity.
Additionally, the startup plans to roll out a ‘coin’, a small device surgically implanted within the brain to capture neural signals, and a ‘peak performance suite’, a system/set of tools designed to optimize performance.
But the biggest achievement has been an affordable price tag in a price-sensitive Indian market. According to its website, Nexstem will charge INR 2.1 Lakh for its Instinct headset kit.
It will also lower its charges for other offerings to ease its entry into the Indian market. Currently, pricing varies based on clients and the markets where they operate. But Dangi said the startup would standardize costs before approaching Indian prospects.
However, the startup’s vision and goals go beyond its brain-gauging tech. “Ultimately, our vision is to put the entire Nexstem IP into a semiconductor chip, paving the way for the next wave of futuristic technologies,” he told Inc42 without divulging any more detail.
Meanwhile, there will be the usual glitches in the form of tough competition in the global market, cybersecurity and privacy concerns, and techno and medical ethics when BCI applications are used randomly, without critical protection.
Brain fingerprinting could have a high-risk outcome without stringent regulatory measures, a clear code of conduct regarding consent and transparency or public education and awareness.
Given the record spike in cybersecurity attacks in Q3 2024 – a 75% increase compared to the same period in 2023 and a 15% rise from the previous quarter, Nexstem and its peers must practice extra caution before making brain data available for large-scale commercial use.
[Edited By Sanghamitra Mandal]