Biotech startup Psylo closes US$8m seed round on psychedelic treatment
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The news: Biotechnology startup Psylo has announced its first close on a USD8 million ($12 million) seed round to advance its development of the company's flagship psychedelics treatment for depression and other mental health disorders.
The context: The series seed financing was led by Perth-based health investor Tenmile, with participation from Palo Santo, Focalpoint Ventures (formerly Empath Ventures), Mystic Ventures, and Gaingels.
Sydney-based Psylo said PSYLO-100X distinguishes itself from first-generation psychedelics by eliciting neuronal remodeling without causing hallucinatory effects.
The compound demonstrates antidepressant-like effects in vivo and promotes neuroplasticity in vitro, while avoiding activation of the 5-HT2B receptor — a critical safety feature due to the cardiotoxicity risk associated with activation of this receptor.
The company said it plans use the series seed funds to continue to invest in its drug discovery platform, and advance PSYLO-100X through investigational new drug (IND) enabling studies, with the goal of initiating first in human clinical trials in 2025.
Psylo recently restructured to become a US Delaware C-corp in-line with the fundraise, and has established labs at the University of Colorado Boulder and the University of New South Wales in Sydney.
What they said: Psylo CEO Joshua Ismin said: "This capital raise underscores strong confidence in Psylo’s unique translational approach and the therapeutic potential of our pipeline."
"Our platform has yielded a non-hallucinogenic candidate designed to be safely administered at home without clinical supervision, and serves to advance our mission to address the mental health crisis for a broader patient population," he said.
The source: Psylo media release
