Neuralink Stock IPO: Can I Invest In Neuralink?

Neuralink Stock IPO

Neuralink is Elon Musk’s latest newest business devotion and it has gained massive attention from mainstream financial experts and tech investors. Therefore, many investors are showing interest to invest in Neuralink. However, can you buy stock in Neuralink?

Well, currently it is not possible to buy Neuralink stocks because Neuralink is not a publicly-traded company yet. Now Neuralink has many investors and Elon Musk has the biggest buy-in at $100 million. Other investors of Neuralink are Craft Ventures, DFJ Growth, Dreamers VC, Future Ventures, and Valor Equity Partners. So, if there will be any feature IPO of Neuralink then you will be able to buy its stocks.      

What Is Neuralink?

Neuralink Corporation is a neurotechnology company that aims to develop ultra-high bandwidth brain-machine interfaces that will connect the human brain and computer. This company was launched in 2016 by Elon Musk and was first publicly reported in March 2017. Business Insider wrote – 

“Tesla CEO Elon Musk has an unusual passion project: a neural tech company called Neuralink that wants to put wires in people’s brains. He’s founded a general-purpose research organization called OpenAI, but Neuralink has a much more tangible, futuristic goal of making AI-enabled devices capable of interacting with people’s brains.”

The main purpose of Neuralink is “developing ultra-high bandwidth brain-machine interfaces to connect humans and computers.”

Rise Of AI And Neurological Disease

According to Elon Musk, humans are at risk of being overtaken by artificial intelligence within the next five years. This prediction marks a significant revision when machine intelligence surpasses human intelligence and accelerates at an incomprehensible rate. However, Elon Mask’s opinion is in direct contradiction to other intellectual giants who believe we are nowhere near the complex, creative thinking artificial intelligence. At present, artificial intelligence is used to replace mundane, repetitive human tasks, etc. For example, a robot could replace a human on the car assembly line.

At the same time as the rise of AI, neurological diseases and disorders are increasing throughout the developed world. Below are some dangerous neurological diseases – 

1. Alzheimer’s

2. ALS

3. Bell’s Palsy

4. Epilepsy

5. Tumors    

According to the ALS Association, every year about 6,400 people in the United States are diagnosed with ALS. Moreover, ALS Association also estimates that around 20,000 Americans are currently living with the disorder. 

UBS has published a research report on the growth potential of AI –

“By the end of the decade, we believe the recent rapid advances in AI will eventually plant progress firmly into the AGI phase, the beginning of true autonomy. AI-powered machines and software will likely start to untether from human supervision, embarking on their fateful path as sentient beings. But this will happen much later in the distant future. In the next four years, however, we believe AI’s industry growth will start to explode and its impact on businesses and society will begin to emerge. According to our estimates, the AI industry was a $5 billion marketplace by revenue in 2017, a respectable size for such a budding sector. By 2020, we believe exponential improvements and broader adoption should more than double revenue to become a $12.5 billion industry. This represents a 20% annual growth rate. Assuming enterprise value/sales multiples of 10-15x, which is on par with other emerging fast-growing industries within the tech sector. AI as a standalone industry has the potential to claim a total market cap of $120-180 billion by 2022.”

Neuralink Stock IPO

IPO refers to an initial public offering and it is a process of offering shares of a private company to the public in a new stock issuance. IPO allows private companies to raise capital from public investors. Taking a private company public can be an important time for private investors to fully gain profits from the investment as it typically includes share premiums for current private investors. Though Neuralink is a private company it will certainly IPO in the near future. So, what would be the worth of Neuralink stock is a very common question among stock investors. Usually, the price of the stocks is derived by a few variables and they are – 

1. Capital Structure

2. Management Team

3. Sales Growth Rate

4. Historical Earnings

5. Free Cash Flow

6. Dividend Policy

7. Current Valuation      

Recently Google purchased the equity in Neuralink as part of a Series C Funding Round and Neuralink collected $205 million in additional funding. Based on an estimated $10 billion valuation, many experts think that the price of an IPO might be $200 per share.

How To Buy Neuralink Stock

Neuralink is not a public company so you can’t buy the Neuralink stocks but you can still invest in them. If Neuralink goes public it will allow investors to purchase its stocks and invest money in them. But until that day come, you might be able to invest in Neuralink indirectly.

You can buy stocks of a company that has already invested in Neuralink. This way you can indirectly invest in Neuralink. For example, Alphabet Inc. participated in Neuralink’s latest round of funding and is a publicly-traded company. So, you can buy the stocks of Alphabet Inc. The recent price of Alphabet Inc. was $2,877.82 per share.

Or, you can invest in other companies owned by Elon Musk. You should know that Elon Musk hugely relies on his own assets to fund his other companies. So, you can invest in Tesla which is a public company. The tesla stocks were traded at $1,160 per share and the company was valued as a $1 trillion company. But you can’t invest in SpaceX because it is still a private company.

FAQs About Neuralink Stock IPO: Can I Invest In Neuralink

What Company Owns Neuralink?

Neuralink is a private company it was founded and owned by Elon Musk, Max Hodak, Ben Rapoport, Dongjin Seo, Paul Merolla, Philip Sabes, Tim Gardner, Tim Hanson, and Vanessa Tolosa, who are experts in areas such as neuroscience, biochemistry, and robotics.

Does Neuralink Have A Ticker Symbol?

No, Neuralink doesn’t have a ticker symbol. It is a private company and it has no stock price and stock ticker symbol.

What Will Neuralink Be Able To Do?

You can use Neuralink to operate encephalopathy. It can also be used as a connection between the human brain and technology. So, with Neuralink paralyzed people can easily operate their phones and computer directly with their brains.

Is Neuralink FDA Approved?

No, Neuralink is not FDA approved. According to Elon Musk, Neuralink will start the human trials in 2022, pending FDA approval.

Does Neuralink Plan To Go Public?

If you are planning to invest in Neuralink stocks then you have to wait because Elon Musk doesn’t have any immediate plans for an initial public offering of Neuralink. So, as long as Elon Musk is with Neuralink the chance of Neuralink becoming a public company is very small.

References:

1. https://equityzen.com/company/neuralink/
2. https://www.economagic.com/neuralink-stock-ipo/

Last Updated on February 7, 2022 by

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