BrainQ, an Israeli stroke therapy technology company, closed a funding round worth $40 million. Hanaco Ventures led the raise in addition to Dexcel Pharma, Peregrine Ventures and the company’s existing investors.

These funds bring BrainQ’s total amount raised to over $50 million, according to the announcement.

WHAT IT DOES

BrainQ’s technology uses AI to deliver electromagnetic field therapy to stroke patients through a noninvasive wearable device. It aims to stimulate neurological recovery in the central nervous system by imitating the natural processes of neural network synchronization.

The portable device can connect to the cloud to share information and has integration capabilities with telemedicine devices to allow for remotely monitored sessions through the corresponding app.

The company hopes to ease the long-term costs and burdens of neurodisabilities, particularly among stroke patients. Upwards of 800,000 people in the U.S. have a stroke every year, resulting in chronic disability in roughly half of survivors, according to Stroke Research and Treatment.

WHAT IT’S FOR

Following its FDA Breakthrough Device Designation from February, BrainQ will use the funds to support a multicenter pivotal trial for its stroke therapeutic device as it works to commercialize its product.

“We've seen great advancements in increasing stroke survival rates, but it remains the leading cause of long-term disability,” said Yotam Drechsler, BrainQ’s cofounder and CEO, in a statement.

“With new funding and strong research partners, we're entering our pivotal study aimed at significantly increasing the window of opportunity for reducing disability and enhancing recovery potential.”

MARKET SNAPSHOT

There are a number of other companies also making treatments for neurological injuries, including MedRhythms, which has a Rhythmic Auditory Stimulation prescription digital therapeutic, and Synchron, which developed a neuroprosthesis device that gives patients with stroke-induced paralysis the ability to control digital devices with their thoughts.

Others develop products to help detect and triage strokes. For example, MindRhythm created its flagship product Harmony to help emergency responders detect Large Vessel Occlusion (LVO) strokes in order to triage patients to a hospital that can treat them.

Fellow Israeli startup Append Medical has a device designed to reduce stroke risk in AF patients by excluding the Left Atrial Appendage to prevent blood clot leakage with a minimally invasive transseptal intervention that leaves no metal implant behind.

Viz.ai created a platform that harnesses AI to automatically review CT scans and search for suspected large vessel occlusions. Once identified, the platform alerts all members of the stroke team to triage the patient.