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On the Top Decile podcast, host Connor Sattely sat down with Varun Turlapati, founder and investment lead of Chaanakya Capital, a $2 million pre-seed fund investing in US-based neurotech and neuro-focused MedTech device startups.
With 16 years of software engineering experience and a master's in electrical and computer engineering, Turlapati brings rare technical fluency to a sector where most investors struggle to even read the research papers. His thesis is straightforward: neurotech is misunderstood, underfunded, and on the verge of a breakout moment.
Neurotech Is Much Bigger Than Brain-Computer Interfaces
When most people hear "neurotech," they think of brain-computer interfaces, the glamorous side of the sector that dominates headlines. But Turlapati sees the opportunity as far broader. Neurotech, in his view, encompasses anything that interfaces with the body's nervous system, from spinal cord stimulation to peripheral nerve stimulation to bioelectronics.
The body's nervous system is essentially a vast command-and-control infrastructure, sending signals from every organ back to the brain. When technology taps into that network to treat, manage, or repair conditions, that is neurotech. Turlapati pointed to surprising applications: irritable bowel syndrome, heart failure, and chronic pain all fall under the neurotech umbrella. "It doesn't even have to be brain disease," he explained. Heart failure, for example, can involve overactive nerve signaling that wears out cardiac valves. Neurotech devices can attenuate those signals, extending a patient's life.
Why Now: Neurotech in 2026 Is AI in 2016
Turlapati makes a compelling case for timing. He draws a direct parallel to the state of artificial intelligence a decade ago. In 2016, AI conversations were dominated by skepticism. People treated it as a distant experiment, something that might matter in 2050. By 2022, AI had become essential, and no startup pitch was complete without it.
Neurotech, he argues, is at that same inflection point today. Enough critical mass of research has accumulated that commercially viable devices are emerging across multiple subsectors. The timeline may be longer than AI's rapid consumer adoption, but the trajectory is unmistakable. "Five years down the line, everything will be neurotech," Turlapati said. For investors willing to move early, the window is open now.
The Fund: Devices, Not Drugs
Chaanakya Capital is deliberately narrow in its focus. The fund invests exclusively in neurotech devices, not pharmaceutical solutions. Target companies are US-based or US-oriented, and the fund looks at everything from pre-seed through Series A. But the stage label matters less than traction and valuation. Turlapati prefers entry valuations under $20 million, with a stretch ceiling around $40 million.
That discipline has already produced results. In just 10 months since launch, Chaanakya Capital has made four portfolio investments. Turlapati credits VC Lab with helping him set up the fund infrastructure quickly enough to pursue deals while the market opportunity was ripe.
Portfolio Spotlight: A Bionic Hand at the Intersection of Three Sectors
Among the fund's portfolio companies, Scionic stands out for its ambition. The company sits at the intersection of brain-computer interfaces, neuroprosthetics, and industrial robotics. Its core product is a bionic hand designed for amputees that offers the dexterity of a natural hand. But the innovation does not stop there. The same hand can be unscrewed and mounted onto a robotic arm, enabling robots to perform tasks in hazardous environments with human-level precision.
Turlapati also highlighted a portfolio company tackling hydrocephalus, a condition that can be fatal within hours for young patients. The startup has developed a smart sensor that sits atop a standard-of-care device implanted in the skull, continuously monitoring pressure and releasing excess fluid as needed. When a neurosurgeon recently reviewed the technology and joined Chaanakya as an adviser, his assessment was encouraging. "That device is good. Just needs to be smaller," the surgeon said. The startup was already working on miniaturization.
The Emerging Manager Edge: Focus and Agility
Every LP asks the same question: why not just invest in a mega fund and wait for them to allocate to neurotech? Turlapati's answer draws on startup logic. Large companies exist alongside startups because startups are more agile and more focused. The same dynamic applies in venture capital. Major MedTech corporations like Abbott, Boston Scientific, and Medtronic still watch startups closely for innovation, often acquiring them later.
Chaanakya Capital's edge is its laser focus. The fund does not chase exciting deals outside its thesis, even when compelling cancer or biotech startups come across the desk. Any remaining bandwidth goes toward working directly with founders, enabling partnerships, engaging with university tech transfer programs, and attending niche conferences. "We're not distracting ourselves with anything else," Turlapati said. That concentration of attention is something a billion-dollar fund, with broader mandates and larger teams, simply cannot replicate at the earliest stages.
The math also favors early entry. At pre-seed valuations, even a mediocre exit can produce strong returns. The strategy is simple in concept: enter at low valuations where the risk-reward ratio heavily favors the investor willing to do the technical diligence.
Advice for Emerging Managers
Turlapati's advice to aspiring fund managers is rooted in personal experience. He still encounters skeptics who dismiss a $2 million fund as too small. His response is to point to results: four investments in 10 months. The detractors go quiet when they see the portfolio.
He shared a story about two women with PhDs in life sciences who were told they could not run a fund because they did not know cap tables well enough. His reaction was blunt. If you have earned a PhD in your field, do not let anyone talk you out of launching a fund over a learnable skill. People with no degrees are writing million-dollar checks.
The real test, in his view, is emotional. If your first instinct when someone doubts you is indignation and a desire to prove them wrong, that is the signal to keep going. If your mind goes straight to worrying about fund fees and fallback plans, it may not be the right path. "Just iterate," he advised, "much like you would if you as a VC would advise a founder." Start small, build a track record, and find ways to make things happen.
Chaanakya Capital's fund profile is available on Decile Access, a platform that connects emerging fund managers with potential limited partners.
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