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New and Promising Psychedelic Investment Pharma Funds

Psychedelic Investment Pharma Funds Are Building the Future of Our World


Psychedelic venture funds are opening a new chapter in the history of medicine and investment, and there is a good reason behind this. Recent clinical studies have proved that psychedelics have enormous potential to treat mental illnesses such as depression, alcohol and drug addiction, anxiety, and many other emotional disorders.

In this article, we will cover the most promising companies that can diversify your portfolio and become a good source of passive income in the next 5-10 years.


Psychedelic Studies: From 30s to a Present Day


Humans revealed the positive effects of psychedelic plants thousands of years ago. Since then, scientists have been thoroughly studying plant-based and artificially synthesized psychedelics.

The first “modern” research of the impact of psychedelics on the human mind and body began with the invention of LSD (lysergic acid diethylamide) in 1928. It’s a synthesized psychedelic drug, the use of which is prohibited in most countries. Today’s studies show that it’s one of the few substances that doesn’t cause addiction and can even help people overcome depression and many other mood disorders.

Albert Hofmann, the inventor of LSD, became the first person who volunteered to digest LSD in 1933. Of course, he wasn’t aware of the implications and how the drug would affect his mind. His actions ultimately led to the active scientific (and even cultural) exploration of the drug in the late 50s.

However, the society of that time dictated the rules, and psychedelic research was suspended until the mid-90s. It didn’t stop entirely but continued to evolve relatively slowly, as active governmental intervention significantly held back the progress.

Though it was apparent that psychedelics possess a great therapeutic potential and don’t imply significant medical risks, even today, the studies are conducted primarily in private institutions and attract few investment firms.


Psychedelics — A New Word in Medicine


Today there are enough trustworthy psychedelic venture capital firms that attract investors with the high quality and overall scientific soundness of the medicines. These funds focus primarily on time-tested psychedelic products and are backed up with novel yet solid research. Some analysts believe that it's only a matter of 5 years before psychedelic medications will conquer the market and become serious opponents of traditional pharmaceutical drugs.

Savvy investors insulate themselves from costly mistakes by choosing the most promising companies in the sector, like Bright Minds, Awakn, Beckley Psytech, atai Life Sciences, and others. The reason behind such decisions is prompted by the legalization of previously outlawed psychedelic drugs that are now widely used to treat depression and other mental illnesses at an early stage.

There is also another option: you can choose among various reliable psychedelic venture capital funds, such as Negev Capital, which usually include shares of the most prospective portfolio companies from the sector, and add them to your portfolio. We have picked a few companies that are definitely worth your attention if you are planning to invest in psychedelic developments. So let’s learn more about the notable figures in the private equity field that have been attracting the attention of investors for the past few years.


Beckley Psytech


Beckley Psytech was founded in 2014. Since then, the company has been actively promoting its mission of helping people who suffer from various neurological and mental disorders.

Beckley Psytech’s scientists mainly focus on integrating psychedelic agents into approved pharmaceutical drugs. The company's recent clinical tests have proved that psychedelic-based medications significantly improve patients’ mental health with neuropsychiatric diseases.

Currently, Beckley Psytech continues to develop programs and offer medical innovations that could become a credible alternative to some of the traditional treatment options. In 2021, the oversubscribed second round of fundraising brought Beckley Psytech an impressive $80 million of financing. That means one thing: big players do believe in the company's success in the field of psilocybin-based clinical studies.


Atai Life Sciences


Atai Life Sciences was the first company specializing in psychedelic drugs that managed to get listed on Nasdaq.

It's one of the most promising biopharmaceutical companies and leverages a unique scientific approach to develop extremely effective drugs that boost the mental health wellness of patients. Medications produced by the company are expected to transform the existing treatment methods of mental disorders.

There is one important thing every investor should be aware of: Atai is not just a single entity but a huge holding company. It comprises 16 companies focused on psychedelic studies, with some of them specializing in direct drug development and others working on enabling technologies.
  • Drug development: Companies from this subdivision conduct research on the effects and medical benefits of psychedelic drugs and develop new, more efficient compounds.
  • Enabling technologies: Companies from this subdivision work on aiding tools used to support and simplify the compound and patient support tool development process.


Awakn


Awakn Life Sciences Corp. is another prominent biotechnology player in the industry, specializing in the treatment of addiction. The company is known for its universal approach that combines psychedelic-based and traditional therapy.

In 2022, Awakn has made a big step towards strengthening its intellectual property rights by filing a patent for its recent significant development. The Awakn team is dead set on preserving their unique pipeline for addiction treatment, especially now that they’ve discovered a ground-breaking chemical series of entactogen-like molecules. These psychoactive compounds have been proved to exert a positive impact on the emotional state of patients and produce remarkable social effects.

The company's leading scientists believe that these newly discovered molecules have an immense potential in terms of treatment of addictions: both substance and behavioral.

Multiple clinical trials have proved that the company’s products have excellent healing potential. Awakn expresses the hope to become the market leader in the field by providing ground-breaking approaches towards addiction treatment.


Small Pharma


With $49 million raised in 2021 only, Small Pharma is a neuroscience company undoubtedly worth noting.

Just like many other companies from our list, Small Pharma mainly aims to help patients with mental health issues. The psychedelic-based therapies of this private institution have already proved to be effective for the treatment of MDD (Major Depressive Disorder).

The pride of the company is its ground-breaking DMT clinical program. Small Pharma's successful research on the substance’s effects and potential has brought it 30 active patents and some good reputation.


Mindset Pharma


Mindset Pharma is one of the most prominent pharmaceutical companies in the industry of psychedelic research. Its mission is to develop innovative medical solutions that significantly ease the lives of patients with psychiatric or neurological disorders.

The company's portfolio includes developments of effective psychedelic-based drugs that deal with the treatment of addiction, depression, and a broad range of neuropsychiatric diseases.

In January 2022, Mindset announced a new business partnership with a prominent Japanese pharmaceutical company - Otsuka Pharmaceutical Co. OPO already has collaborations with a few biotechnology companies that specialize in the development of next-generation psychedelic solutions, including atai Life Sciences from our list.

Just a month after this announcement, Otsuka Pharmaceutical has explicitly confirmed its interest in Mindset Pharma developments by making the first upfront cash investment of $5 million.


Why Are Psychedelic Investment Funds Rapidly Gaining Popularity?


With 20% of North Americans being diagnosed with a mental illness (e.g., depression), state regulators and private investors show increasing interest in the sphere of psychedelic drug development and production. The pharmaceutical future of psychedelics attracts the world's leading scientists and opens doors for previously unnoticed companies.

So, the remarkable benefits of psychedelic-based medicine have become evident to the public. The industry that was once extremely specific and exclusive is now rapidly burgeoning. Today, over 50 psychedelic companies located in different countries get more financial support, finally being able to conduct their unique medical research.

The psychedelic boom in the healthcare sphere has a lot in common with the history of medical cannabis in the United States. Once outlawed, the cannabis industry has surged from a total net worth of $2 billion to an impressive $35 billion in just six years.


Takeaway


Risk-averse investors tend to fill their portfolios with more familiar and stable assets. However, if you prefer to look into the future, psychedelic pharma funds will definitely become an intelligent choice.

While most clinical research is conducted in Europe, the industry is also rapidly developing in the USA and some other countries. Now it's a perfect time to consider adding psychedelic funds to your portfolio. Why? Because you have to do it before any of the institutions involved in this business will make its first ground-breaking discovery, thus driving up the value of the stocks.