Crew - Before we present the new deal below, I want to quickly apologize for being MIA. As most of you know, we’ve been working on the Seed+ round for a Legal Tech company that, quite frankly, is blowing it out of the water. We are finalizing funding for that deal this week so if you’re still interested, please let me know ASAP.

Outside of the deal above and the one below, I would like to start sending more regular content that helps round out our collective understanding of this asset class and industry. That might be topical stuff like why OpenAI just bought TBPN for “low hundreds of millions of dollars” to more nitty-gritty questions like “what are pro-rata rights in venture capital?”

For now, let’s dive into an extremely interesting opportunity from Litquidity Ventures. And, as always, I’d like to remind you to keep the contents of these emails strictly confidential. Please do not contact the company or affiliated parties as these emails are not meant to be shared with anyone outside of this list. Anyone found doing so will be removed.

If you'd like access to the NDA-gated data room and deal link you can send me a text or reply to [email protected].

We are hosting a 45 min call with Paradromics CEO Matt Angle, PhD. If you would like to attend, please let us know. Let’s dive in.

Important: If you received this email, you responded to our survey indicating that you are an Accredited Investor and/or Qualified Purchaser. This memo and its contents are strictly confidential and should only be viewed by express invitation by its author(s). It contains potential investment information that may only be viewed by invitees who qualify as Accredited Investors as defined by the United States Securities and Exchange Commission. If you have received this memo by mistake, or do not meet the qualifications of an Accredited Investor or Qualified Purchaser, please stop reading and disregard this memo immediately.

Paradromics is building the highest-bandwidth brain-computer interface on the planet - a fully implantable neural modem that captures and decodes brain signals at 200+ bits per second, 20x faster than Neuralink and 200x faster than Synchron. The company's first product, Connexus, is designed to restore real-time speech for people who can no longer communicate: patients with ALS, brainstem stroke, and spinal cord injury who are cognitively intact but physically unable to speak.

The device is fully implanted under the skin with no external hardware visible. Platinum-iridium microwire electrodes - the same biocompatible materials used in cardiac pacemakers - deliver both the bandwidth for real-time speech and the durability for a 10+ year implant life. By contrast, Neuralink's polymer thread electrodes have an estimated 2-4 year lifespan and their first patient lost 85% of neural signal within months due to thread retraction.

The FDA granted Investigational Device Exemption (IDE) approval in November 2025 for the Connect-One clinical trial - the first FDA-authorized study for speech restoration with a fully implantable BCI. As of March 2026, Institutional Review Board approval has been secured at all three hospital sites (UC Davis, Mass General, University of Michigan), and the company is on target to perform the first patient implant in May 2026.

Over 150,000 Americans are paralyzed to the degree they cannot speak, write, or type. Patients with late-stage ALS, brainstem stroke, and high spinal cord injury are cognitively intact but locked inside bodies that have lost the ability to produce speech. There is no approved treatment. Current assistive devices operate at 1-5 words per minute through eye tracking or muscle switches. The gap between what these patients can think and what they can express is enormous.

Non-invasive brain-computer interfaces (EEG) are physically limited to approximately 1 bit per second by signal propagation through tissue and bone. That ceiling is not a software problem - it is a physics constraint that no amount of AI can overcome. Restoring real-time speech requires direct access to neurons, which means an implantable device.

Paradromics doesn't build a consumer gadget. They build a medical-grade, pacemaker-class neural interface designed to last a decade or more.

Connexus consists of two fully implanted components: disc-shaped cortical modules (each containing ~400 platinum-iridium microelectrodes thinner than a human hair) placed on the brain surface, and a pacemaker-like chest unit that processes neural data using onboard AI and transmits decoded speech wirelessly. Up to four modules can be implanted via a cranial hub, delivering 1,600 channels of neural data.

At 200+ bits per second, Connexus approaches the throughput needed for natural conversation at 120-150 words per minute. The data rate advantage over competitors is not incremental - it is architectural. Paradromics' metal microwire electrodes achieve higher signal-to-noise ratios and more stable chronic recordings than polymer-based alternatives. This is a physics advantage that cannot be closed by software optimization alone.

The device has demonstrated nearly 4 years of stable intracortical recordings in sheep with no meaningful signal degradation, and a first-in-human proof-of-concept at the University of Michigan in May 2025 confirmed zero adverse events and clear neural signals.

The FDA question is answered. IDE approval is the most significant regulatory milestone in the life of a Class III medical device company. Two additional Breakthrough Device designations provide expedited review.

IRB is cleared at all three sites. UC Davis, Mass General, and University of Michigan are enrolling patients. Several patients already meet inclusion criteria. First implant is targeted for May 2026, with initial data expected 3-4 weeks after.

The convertible note window closes at implant. The $500M valuation cap is available only until the first implant occurs. After that, the cap steps to $800M. This creates a defined window for pre-catalyst pricing.

The Series B process is forming. Management has begun preliminary meetings with potential leads. Four tier-1 investors are already in the data room - two healthcare-specific and two large general technology investors. The target raise is $200-225M at $1.5-2B valuation over summer 2026.

At the high-bandwidth end of the BCI market, there are effectively two serious platforms: Neuralink and Paradromics. The rest are bandwidth-limited to simpler applications.

Paradromics at $500M with 200x Synchron's data rate, 20x Neuralink's data rate, and a 10+ year implant design life is priced at a significant discount to every comparable in the BCI sector. Science Corp raised at $1.5B with entirely unproven technology and zero human data.

Beachhead 1: ALS and severe dysarthria. An estimated 40,000-50,000 new cases per year in the US with severe dysarthria that does not overlap with aphasia. At 5% annual penetration and ~$150K reimbursement per system, this single indication generates $250M+ in annual revenue.

Beachhead 2: Robotic prosthetics. Direct neural control of exoskeletons and upper-body prosthetics, reachable with version 1/2 of the current device. The US has 2.5M people living with limb loss and 180K new amputations per year.

Morgan Stanley sizes the US healthcare BCI TAM at approximately $400 billion.

Best-in-Class Technology: 200+ bps data rate, 20x faster than Neuralink, 200x faster than Synchron. 10+ year implant design life vs. 2-4 years for the nearest competitor. Fully implantable, completely concealed under the skin

De-Risked Regulatory Path: FDA IDE approved. IRB cleared at all three sites. Two Breakthrough Device designations. Patients identified and enrollment underway. First implant on track for May 2026

Compelling Entry Price: $500M cap is a 67% discount to Science Corp ($1.5B), 37.5% discount to Synchron ($800M), and 94% discount to Neuralink ($8-9B). The 20% discount to Series B provides additional downside protection

Defined Near-Term Catalyst: Series B at $1.5-2B over summer 2026, representing a 3-4x mark-up within 6-9 months. Four tier-1 investors already in the data room

Sovereign-Backed Capital Base: NEOM/PIF is the largest shareholder with appetite for $300M+ in follow-on. $44M cash on hand with runway through June 2027

Deep IP Moat: 21 patents (7 granted, 14 pending). Ex-Neuralink CSO leading neural decoding. Proprietary datasets from clinical and preclinical recordings

World-Class Board: Former CEO of St. Jude Medical ($25B acquisition by Abbott), co-founder of Guardant Health, former DARPA Program Manager, former CEO of Deutsche Bank Securities

Valuation Cap: $500M (steps to $800M post-first implant)

Structure: Convertible Promissory Note

Discount: 20% to next priced round

Note Available: Until first implant (expected May 2026)

Min Check: $10K

SPV Terms: 5% upfront one time / 15% carry - we will be direct on the cap table

Deal link / Deck / Data room: Upon Request

If you'd like access to the data room and deal materials, please reach out via email or text.