A Miami company is raising millions to develop mental wellness products derived from "magic" mushrooms.
Emotional Intelligence (EI) Ventures announced it raised more than $20 million in a Regulation A offering, which allows small companies to sell shares to the general public – not just professional investors. The company will use the proceeds to develop medications and supplements derived from psilocybin mushrooms.
“I’m really passionate about democratizing investment opportunities so any investor can reap the rewards, and take all of the risks of early investment in game-changing companies," said EI Ventures founder and CEO David Nikzad, who added that the company aims to raise up to $49.9 million.
One of the products under development is a transdermal patch for the sustained delivery of psilocybin, a naturally occurring psychedelic compound found in some species of mushrooms. EI Ventures partnered with California-based biotech firm Tioga Research to create the patch, which will be used to treat mental health disorders like depression and post-traumatic stress disorder.
EI Ventures is also accelerating the launch of its supplement line MANA, made from non-psychedelic mushrooms. The product targets cognition and the immune system to improve energy, vitality, sleep, weight loss and joint pain, according to the company's website.
A growing body of medical research suggests psychedelic drugs – like psilocybin, ketamine and MDMA – can be effective treatments for certain mental illness and substance abuse in conjunction with therapy. The U.S. Food and Drug Administration has granted at least two breakthrough therapy designations for psilocybin-based drugs for the treatment of acute depression, a process that expedites their development and review.
While there have been some promising studies, the long-term impacts of using substances like psilocybin as part of a mental health treatment plan are still unknown. And like cannabis, the compound is still illegal under federal law.
But there are still some market opportunities. Psilocybin has been decriminalized in six U.S. cities, including major metros like Denver; Seattle; and Washington, D.C. Last November, Oregon became the first state in the nation to permit the use of psilocybin for therapeutic purposes. Canada, one of the few countries that permits the legal consumption of psilocybin mushrooms for people with depression and other mental illnesses, is another location in play.
South Florida companies are already entering the psychedelic health care market. In early June, Miami-based telemedicine startup NUE Life Health raised a $3.3 million seed round for its at-home ketamine therapy service. Iter Investments, a Fort Lauderdale-based venture capital firm, also launched this year to fund businesses in the burgeoning psychedelics industry.
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