Smart contact lens: start-up Xpanceo receives 250 million US dollars

According to Xpanceo, it has developed 15 functional prototypes of contact lenses that are being tested for a wide range of applications. These include contact lenses with a tiny display, a sensor for measuring intraocular pressure for the early detection of glaucoma, and a biochemical function for recording health parameters such as glucose levels directly from the tear fluid.

Other prototypes demonstrate wireless charging and data transmission as well as nanoparticle-enhanced functions for night vision, color correction, and 3D imaging. Some of these prototypes have already been demonstrated at trade fairs. The company now aims to have a model ready for clinical trials by the end of 2026.

In the press release, Xpanceo is confident and announces in classic marketing language that its contact lens will replace all personal devices and herald the end of the screen era. Xpanceo wisely leaves it open as to when this will happen.

Xpanceo, a start-up based in Dubai, was founded in 2021 by Russian entrepreneur Roman Axelrod and Ukrainian researcher Valentyn Volkov, an expert in the field of nanophotonics and advanced materials.

The Series A financing of 250 million US dollars increases the start-up's valuation to 1.35 billion US dollars. The main investor is Opportunity Venture, which had already led the seed financing of USD 40 million in 2023. The start-up employs around 100 specialists.

Enormous hurdles for smart contact lenses

The challenges are enormous: the technology, including the power supply, must fit into the eye without restricting vision or comfort. Before a corresponding product can be launched on the market, it must also be approved by medical regulatory authorities such as the FDA, a process that can take many years. And even then, the question remains as to how big the market is for electronics that need to be inserted into the eye. Related technologies, such as smart glasses, are much less invasive.

Investors in the start-up Mojo Vision already had concerns about the staying power required for a project like this. The company also developed smart contact lenses with a display. Venture capital of well over 200 million US dollars was apparently not enough: in 2023, the smart contact lens was put on hold due to failed financing talks. Since then, the start-up has focused on the development of MicroLED displays, which it sees as having shorter-term market potential.

Anyone interested in Xpanceo's prototypes can find a field report on the blog of XR enthusiast Antony Vitillo.

(mki)