As you have probably seen, the Cognitive Health and Brain Fitness field is rapidly evolving, so let me highlight some of the main recent developments affecting the field:

1) Public policy initiatives:
- The Government of Ontario, Canada, announced a $10m investment in Baycrest Research Center to help develop and commercialize brain fitness technologies. This $10m investment was matched with an additional $10m by local investors.
- In the US, The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 was signed into law, included in the recently-approved economic bailout bill. The passage of this law has significant implications for healthcare providers and technology vendors alike.

2) Computerized Cognitive Assessments Used by the US Military:
The US Army launched a new policy requiring cognitive screenings of all soldiers before deployment (in order to better diagnose potential problems such as PTSD and TBI upon return). ANAM was the selected computerized battery of tests.

3) Venture & Angel Fundraising for Cognitive Training companies:
A number of developers have raised money. CogniFit received $5m (from Milk Capital), Lumos Labs $3m (FirstMark Capital -previously called Pequot Ventures-, Norwest Venture Partners), Scientific Brain Training $1.5m (issued shares), Vivity Labs $1m (undisclosed angel investors), This is, of course, on top of the February $10.6 investment in Dakim (Galen Partners) that we already included in our market report.

4) Major Initiatives by Insurance Companies:
- Allstate launched a large-scale research project to measure impact of Posit Science InSight (visual processing training) on driver safety for adults over 50.
- OptumHealth announced a 3-year, $18m agreement with Brain Resource to offer web-based cognitive assessments as part of clinicians’ decision support systems.
- Humana decided not to renew its agreement with Posit Science to offer Posit’s auditory processing training program to Medicare members.

5) New Research:
- In a significant new study, a team from the University of Michigan published a high-quality paper in the Proceedings of the National Academy of Sciences showing how computerized working memory training can generalize and improve fluid intelligence (one of the domains that tends to decline with age).
- Learning and Teaching Scotland released an internal study showing how Nintendo Brain Training can help children’s math and concentration skills. The study gained significant media attention, despite the fact it hasn’t been published in a respected journal.

Note: This is an excerpt from the 6-Month Market Update we will  release later this month, covering the many important developments that have occurred since we launched the inaugural Brain Fitness Market Report in March this year. This special report will be available exclusively for our Premium Research Sponsors.

Press release: Here 

– “Lumos Labs, developer of Lumosity.com, the leading web-based provider of scientifically-tested brain training games, today announced that it has raised $3 million of equity financing from Pequot Ventures, Norwest Venture Partners (NVP), and existing investors including Michael Dearing. The investor group brings expertise that will catalyze the ongoing development of Lumosity.com and support Lumos Labs’ mission to improve lives by enhancing brain fitness.

– “Lumos Labs is at the center of a booming interest in cognitive exercise and the emerging science about the remarkable plasticity of the brain, said Amish Jani of Pequot Ventures. Lumosity.com has seen tremendous demand from users and partners alike by leveraging the power of the web to deliver a unique platform for brain fitness.

Great news for the sector. The more tools available for leading mentally stimulating lives, the better we will all be.

Lumosity.com (click Here to get a sense of their games) provides a great user experience at a reasonable cost. From an investor’s perspective, we believe Lumos Labs is a very serious contender in the brain fitness space, and it has indeed been executing a very smart online strategy.

Now, I am not sure what “scientifically-tested brain training games” really means. While preparing our Brain Fitness Software Market Report we reviewed all published research on the efficacy behind different programs, and didn’t find any for Lumosity (which has some very interesting internal, but not published, data).

We gave Lumosity a score of 2 ouf of 10 in Clinical Validation (with Nintendo Brain Age getting a score of 1, and NovaVision, cleared by the FDA for use with stroke/ TBI patients, getting a 5).

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