There is a lot of excitement regarding psychedelics in treating serious illnesses. I believe this sector can one day be bigger than cannabis. Psychedelics refer to:

• Psilocybin (Shrooms)
• Ketamine
• DMT/Ayahuasca/Dimitri
• Peyote/Mescaline (Cactus)
• MDMA (Ecstasy/Molly)
• Salvia Divinorum
• LSD
• Ibogaine

In the future, I believe many of these drugs will be used to treat mental illness and addiction. I am super excited and optimistic about this space in general and I prescribe to the idea a rising tide lifts all boats. A lot of these psychedelic biotech companies will likely be really profitable down the road. We are only in the beginning stages of this sector as none of these drugs have been approved by regulators yet. I think companies focused on Psilocybin treatment will gain market share the fastest as Psilocybin is the easiest of these drugs to be distributed. In the psychedelic sector, the biggest companies focused on mainly Psilocybin are:

ATAI Life Sciences
Compass Pathways Plc
Mind Medicine
Cybin Inc

The science supports it:

There is evidence that the reduction of astrocytes in your brain is linked to depression. Psilocybin and other psychedelic drugs may increase or boost astrocyte function. Recent studies have been overwhelmingly positive:

Dr. Charles Grob, a professor of psychiatry and biobehavioral sciences at UCLA, who worked with terminal cancer patients in the early 2000s, says many of the patients he worked with emerged from the experience with a newfound ability to focus on the present moment.

Most of his patients came in experiencing high levels of existential distress, demoralization, depression and anxiety. After the psilocybin treatments, they often left with a newfound sense of peace and a determination to spend the rest of their days connecting with loved ones and making the most of the time they had left.

Magic Mushrooms May Be the Biggest Advance in Treating Depression Since Prozac

“Because there are several types of major depressive disorders that may result in variation in how people respond to treatment, I was surprised that most of our study participants found the psilocybin treatment to be effective,” explained Roland Griffiths, PhD, study author and director of the Johns Hopkins Center for Psychedelic and Consciousness Research.

Magic Mushroom Compound Can Relieve Major Depression, New Trial Shows

Different times and attitudes:

By the late 1960s, funding and research on psychedelic therapy stopped due to politics and regulation. Today the politics and mood have changed. In 2019 The FDA greenlighted Psilocybin medical research. Now regulation has eased with several cities decriminalizing Psilocybin. In 2020 Oregon legalized Psilocybin for therapeutic use. The fact is that science was right 50-70 years ago and it hasn’t really changed (which is a good thing). What has changed is the money. This type of research was only getting a small amount of funding up until recently. Now VC deals and institutions are pouring million into psychedelics the past two years.

Don’t bet against Peter Thiel:

Peter Thiel is a co-founder of PayPal. He was the first outside investor of Facebook. He is the chairman of Palantir Technologies. His track record is impressive and shadowing some of his investments would seem like a wise decision. Both Compass Pathways Plc and Atai Life Sciences are backed by Thiel. I would assume Thiel having a Silicon Valley background, knows how big Micro-dosing is thus, understands how big the market would be if Psilocybin received a medical pathway from the FDA. This to me is a no-brainer. If it’s good enough for Thiel, I will follow his lead. One of my favorite investing quotes is from the great Charlie Munger: “I believe in the discipline of mastering the best that other people have figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody is that smart.”

There is simply too much good news not to invest in Psilocybin. I believe in the science and data. Will there be political and regulatory hurdles ahead? Absolutely, but let’s exercise some common sense. If you believe the thesis that Psilocybin can significantly help many people with depression, addiction, or mental illness, wouldn’t it be better for this to be on the market, covered through insurance, vs the current antidepressants available? We wouldn’t be having this discussion if there was a viable legal solution readily available to combat mental illness and addiction. Psychedelics/Psilocybin is trending upwards for the past 15 years on Google trends. Clinical trials today are much safer compared to the 60s. The face of the Psychedelic movement is not nutty psychologists giving acid to random people but well-respected entrepreneurs with money and influence. They give credibility to this space and can help with the regulatory approval process. Aside from the actual science is the story. Mega Influencers like Peter Thiel can help shape the story of this industry and avoid the roadblocks we have seen in cannabis.