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Infographic – Psychedelics Funding Coming Down

Bar chart: Venture funding in psychedelics, 2019-2023

Click on image for full-size view (CB Insights)

6 May 2023. Science & Enterprise reports occasionally on advances in adapting psychedelic compounds to treat pain, addiction, and depression, with chemicals often considered controlled substances under the law. Our story on Thursday, for example, tells about a clinical trial of 5-MeO-DMT, a mind-altering compound derived from desert toad venom and some South American plants, as a therapy for treatment resistant depression.

The technology intelligence company CB Insights (paid subscription required) says this week however that psychedelic therapies and services are generating little interest among venture investors this year, with only nine deals totaling $21 million. After a high point of $658 million in 59 deals in 2021, the number of investment dollars for psychedelics fell to $237 million in 33 deals last year, with the decline continuing this year, a pattern seen in most business sectors.

One reason for the downturn may be alternative mental health technologies without the legal baggage of psychedelics, such as other psychoactive compounds, mobile apps, and virtual reality. Examples reported this year are in the links below.

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