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Investago | Neuralink's Valuation Skyrockets Amid Regulatory Approvals and Challenges
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Neuralink's Valuation Skyrockets Amid Regulatory Approvals and Challenges

Elon Musk's brain implant startup, Neuralink, has seen its valuation surge to around $5 billion in recent privately executed stock trades, following investor interest ahead of its human trial approval by U.S. regulators. This represents a significant increase from its valuation of nearly $2 billion two years ago. Some experts, however, predict that it could take at least a decade for the company to commercialize its brain implant.

A bullish market response followed the announcement of Neuralink's human trial approval, with shares privately marketed at a $7 billion valuation. These transactions involve early backers and employees, and are not a direct reflection of the company's market value. Neuralink, which raised $205 million at a $2 billion valuation in its last known fundraising in 2021, has been trading shares mostly with smaller investors.

 

Critics, however, have called Neuralink's valuation "bonkers," citing its early clinical development stage. The company also faces challenges including federal investigations into its handling of animal research, as well as a potential violation of transportation regulations related to dangerous pathogens. Despite these hurdles, demand for Neuralink stock remains high, with the potential of Musk's brain chip venture promising to revolutionize the treatment of various mental and physical health conditions.

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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.