Palo Santo, a venture capital fund focused on backing and building emerging psychedelic therapeutics companies, recently announced the closing of its $50 million fund.
The oversubscribed fund is positioned to have a transformative impact on the field of mental health by funding a diverse portfolio of businesses developing innovative psychedelic medicines and therapies targeting both mental health as well as a range of Central nervous system (CNS) disorders.
“Following decades of criminalization, psychedelics are demonstrating their potential to treat mental health disorders more rapidly and durably than currently available treatments, in a field that hasn’t seen substantial innovation for over 30 years,” said Tim Schlidt, Palo Santo co-founder.
“Against the backdrop of a growing global mental health crisis, our mission is to drive clinical development and FDA approval of these much-needed therapies that we believe will become the future standard of care. We are proud to play a role in this paradigm shift and look forward to creating value for our portfolio companies, investors, and most importantly patients and their loved ones,” continued Schlidt.
Daniel Goldberg, Palo Santo co-founder added, “It’s very encouraging to see the momentum in psychedelic drug development supported by leading academic institutions, investors, regulators, and politicians from both sides of the aisle. MDMA is expected to be approved within the next two years as a breakthrough therapy for the treatment of PTSD and psilocybin approximately two years after that for depression.”
The Palo Santo Fund is currently invested in over 20 portfolio companies across the psychedelic ecosystem. Moreover, the company combines its investing and portfolio-building experience with the expertise of leading academics and advisors in psychedelic science.
A group of authoritative researchers will serve on Palo Alto’s advisory board.
“Globally, there is a huge unmet patient need for more effective mental health treatments. Psychedelic therapies represent a potentially exciting new class of neuropsychiatric treatments and it’s been so important for this nascent industry to have the backing of diligent investors such as Palo Sant,” said Beckley Psytech CEO Cosmo Feilding Mellen. “We are grateful for their support, which has helped us to advance our pipeline of psychedelic programs, and look forward to continuing to work with their team.”
Finally, Julie Holland, MD, Palo Santo Scientific Advisor, and Medical Advisor to the Multidisciplinary Association for Psychedelic Studies (“MAPS”) said: “Having been a clinical psychiatrist and psychopharmacologist for the past 25 years, I see incredible potential for psychedelics to benefit patients, including those whose therapies are no longer effective.
“It’s crucial that the most promising companies and therapies receive the funding needed to advance psychedelic medicines through clinical trials in a timely manner, and I am proud to be part of a team of experts who share that same goal,” Holland concluded.
