Toronto-based neurotechnology startup Interaxon has closed a $12.1 million CAD ($9.5 million USD) Series C round to support the roll out of a membership model for its wearable tech offering.
The funding was jointly led by BDC Capital, Alabaster (family office of Sunny Vu, founder of Misfit), and Export Development Canada. It also included participation from new investors Phyto Partners, Iter Investments, Intretech(HK) Co, and The Clavis Foundation.
Interaxon co-founder Ariel Garten also contributed to the financing. Garten stepped down as the company’s CEO in 2015 and was replaced by the Interaxon’s COO at the time, Derek Luke.
According to Interaxon, it saw strong market interest for the round and has opened an allotment for additional investment with a second close planned by the end of the third quarter.
Founded in 2007, Interaxon develops brain-sensing technology to provide consumers with deeper insight into their brain health and overall well-being. The first edition of its sensor-powered headband, named Muse, was first launched in 2012 and allowed smartphone users to play games and perform other tasks by using only their thoughts.
The second iteration of Muse was released in 2018 with added features, such as sensing capabilities for brain activity, heart rate, and breathing patterns. In that same year, Interaxon acquired Colorado-based Meditation Studio, which provides guided meditation courses.
Interaxon introduced the third version of its Muse headband in 2020, along with a sleep tracking feature.
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With the recent addition of new capital, Interaxon plans to launch an integrated wellness membership model, paired with further research and validation of tracking longitudinal changes in the brain. The company noted it will also support expanding its offerings for third-party developers, researchers, clinicians, and other strategic partnerships.
Interaxon claims that its first-ever brain performance measurement offering will allow users to compare themselves to various groups across the broader population, and against their own historical values over time.
Personalized insights, along with other new biosensor trend reports, will be unveiled later this year according to Interaxon, and will be included in the new membership program.
Set to launch in the first quarter of next year, Interaxon said its new subscription model will provide a lower-cost entry for customers to try advanced wearable technology for electroencephalogram, a test that measures electrical activity in the brain.
Members are expected to gain access to participate in community research initiatives, continuous expert support, ongoing content updates, headband replacements and new device models.
In 2013, Interaxon raised $6 million in Series A financing followed by a $10 million Series B round in 2015.
Featured image from Interaxon’s website.