Venture Capitalist Palo Santo raises $35 million for psychedelic fund By Reuters – Investing.com

Venture Capitalist Palo Santo raises $35 million for psychedelic fund By Reuters – Investing.com

(Reuters) - Venture capital group Palo Santo said it had launched its first psychedelic investment fund on Thursday after raising a more-than-expected $35 million, which has been invested in over 20 companies and could be upsized.

The nascent psychedelic treatment market has seen investor demand surge over the last year as multiple studies have shown psilocybin, an active compound in magic mushrooms, is effective in treating depression and other mental afflictions.

Billionaire investor Peter Thiel-backed psychedelics startup, atai Life Sciences, a company that Palo Santo has also invested in, debuted on the Nasdaq with a market value of $3.2 billion last month.