It may seem like just another clickbait headline, but it’s actually true: over the past couple of weeks Bitcoin has done extremely well, but publicly listed shares in psychedelics companies are doing even better. I am not really surprised, because that expectation is the exact reason that earlier this year we started a psychedelics venture fund, Synaptic Ventures. I wrote a post in July about this, with my expectations for the sector and with a description of the companies we planned to invest in. You can find the post here: https://www.marc.cn/2020/07/psychedelics-the-next-big-thing.html
Just now I sent out an email to our limited partners (=the investors in the fund) with an update on our investments and our returns. Because it gives a good overview of what is happening in the sector I decided to share it here as well (slightly redacted). As you can see over the past 8 months we made an average 120% return on our investments that are publicly listed. I don’t see this ending any time soon and we have some interesting new investments in the pipeline. It’s great to be part of this sector, to help advise some of the leading companies in the space and of course to also make nice returns for our investors.
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Dear Synaptic Ventures investors,
I would like to give you an update on the investments we did with Synaptic Ventures this year and the performance of our portfolio companies. It’s been quite a year for psychedelics and the financial markets: the first psychedelics company only went public in March this year and since then many have followed. We looked at many different companies this year and only invested in the ones that we feel have the best long term potential. Our thesis is that we only want to invest in high quality companies, not in potential pump and dumps.
Since we started investing in June this year we have made a number of investments:
– Entheon Biomedical
Entheon Biomedical is a biotech company focussed on the development of psychedelic medicines for addiction disorders. The Company’s research and development pipeline revolves around DMT. The company went public in November 2020. We bought the shares at $0.40, the current share price is $1.03 (+157%)
– Sansero Life Sciences
Sansero Life Sciences is a Canadian-based bioscience company developing novel medications based on psilocybin.
The company merged with Cannaglobal and Rise this summer, and is now called Cannaglobal Wellness. The valuation of Sansero in the merger was double the valuation from when we invested, so on paper we made a 100% profit.
– Cannaglobal Canada
We invested in Cannaglobal Canada right before their merger with Sansero. They are now called Cannaglobal Wellness. They are a global psychedelics leader focused on psilocybin and other natural compounds to promote emotional, mental, and physical wellness. The company is still private.
– Field Trip
is a mental wellness company that focuses on psychedelics and psychedelic-enhanced psychotherapy.
The company listed in October 2020. We bought our shares at $2.00 and sold them at $2.64 shortly after the listing (+32%)
– Eleusis
Eleusis is one of the early movers in the psychedelic medicine space (the company started in 2013 already), they are looking at using psychedelics for both anti-inflammatory and mental health applications. The company is still private.
– Cybin
Cybin’s aim is to become the first life sciences company to bring a psilocybin drug to market targeting Major Depressive Disorder (MDD). They raised a $45 million round in October 2020 (a record for a Canadian psychedelics company) and listed a month later. We invested at a $0.75 share price, the current price is $2.25 (+200%).
– Psybio Therapeutics
Our latest investment is Psybio Therapeutics, we completed this investment earlier this month. PsyBio Therapeutics is developing biosynthetic psychoactive compounds which offer a new paradigm of treatment to reverse the course of mental health issues.
As always, if you have any questions or remarks feel free to get in touch any time. Easiest is to email me or to add me on WhatsApp or WeChat.
Happy holidays!
Marc
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