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- $25,000min. investment
- Psychedelic Med.investment focus
- $60MFund size
- 31 May 2021Deadline
The world is facing a mental health epidemic.
Nearly 1 Billion people are affected globally. In the U.S. alone, nearly 1 in 5 adults experience mental illness and 1 in 13 young adults experience severe mental illness each year1.
Current treatment protocols are failing patients and society.
Mental health and addiction cost burdens are overwhelming our healthcare systems while leaving patients with poor outcomes. Mental health issues cost the EU greater than €600Bn annually.
Psychedelic medicine has the potential to address the crisis.
No longer just a meme of the counterculture movement of the 1960s, pioneering research is proving that therapeutics based on psychedelic compounds like psilocybin, MDMA, and ibogaine have the potential to provide improved treatment outcomes and enhanced patient safety for indications including depression, anxiety, chronic pain, PTSD, and substance dependence.
Lack of early-stage funding leaves a large addressable market underserved.
The Investment Team is focused on identifying high-conviction early-stage investment targets, using the following framework to guide the Partnership’s overall investment strategy:
Diversified Subsectors: We focus on investing across a balanced index of companies with a core focus on psychedelic medicine-based drug development and treatment centers, and a secondary focus on software, consumer packaged goods, and other ancillary and adjacent subsectors.
World-Class Teams: We prefer to work with balanced teams that consist of technical founders with deep subject matter expertise in their respective fields and non-technical founders with robust finance, operations, and management experience in similar ventures. Our preference is to back founders with clear track records of success in their domain and ideally those that have track records of successfully starting and exiting companies in the past.
Focus on Seed-Series A: We intend to invest approximately 55% of the Fund in Seed and Series A entry point deals. Of these we are aiming to make 15-20 Seed investments at ~$250k-1mm, alongside 10-15 Series A investments ranging from $500k-3mm per check. About 5% of the fund will be allocated to pre-Seed entry point deals where we will target an average check size of $100k. The remaining 40% of the fund will be allocated to later follow-on rounds where we will strategically double-down on companies that we have already invested in during a previous round which we deem to be high-conviction bets.
Geography Agnostic: We will opportunistically consider opportunities regardless of geography, however given sector activity and our team’s core geographic footprint, we are primarily focused on companies originating in North America and Europe.
Risk-Mitigated Strategy: Our preference is to back founders that have demonstrated a deep understanding of the risks associated with both their industry and their business. These founders have proactively taken steps to mitigate potential risk by establishing clear contingencies and diversifying their strategy to not overly rely on any one single part of their business model.
Clear Vision: We want to work with visionary leaders that see the future and know what steps are needed to get there. These leaders have given a great deal of thought to how they want their companies to evolve and what they want the business to achieve both operationally and financially, clearly laying out relevant and actionable goals, milestones, and timelines.
Atai Life Sciences
Pioneering the development of more effective and potentially disease-modifying mental health treatments.
Our mission is to develop new and better therapies for mental health conditions by unlocking the promise of psychedelic compounds.
Formerly CEO of cannabinoid manufacturer and retailer CBD Virtue, and director of research and testing at non-profit The Cannabinoid Trust. Henri’s background is in law, and he began his career as a technology entrepreneur, before working as a consultant in the supplements, pharmaceuticals and healthcare sectors. In addition to co-founding TCF, Henri is also a co-founder of Hive, the European center of excellence for clinical trials and novel therapeutics. He is Board Director of Microdose, the psychedelic industry’s leading media company, and actively advises companies in the space on strategy and raising capital..
Over a decade of experience in venture capital, assessing and executing deals in the UK and Europe with a focus on early-stage tech. He was also CEO of a startup incubator which served as the mobile studio and partner for brands such as Aston Martin, Virgin Atlantic, and Ferrari. He is a pioneer in mental health: he was the creator of Digipill, a multi-million downloaded mental wellness product; co-creator of the world’s largest dreaming experiment - Dream:ON - alongside Professor Richard Wiseman; and an investor and advisor of sleep wellness company OTTY. He is also co-founder of Hive, the European center of excellence for clinical trials and novel therapeutics.
Prior to TCF, Michael founded and ran Kensho Ventures, an advisory firm supporting ultra-high net worth family offices with the management of direct private equity portfolios of up to $100 million. Previously, at McCombie Group in Miami he helped build the firm’s private equity practice, co-leading its first major buyout as a General Partner, and was also heavily involved in the firm’s management consulting arm where he largely focused on healthcare engagements. He began his career at JPMorgan Chase & Co. in New York where he served on banking teams managing assets in excess of $12 billion. MBA Candidate - The University of Chicago Booth School of Business; BS (cum laude) - The Wharton School, University of Pennsylvania.
2.5% during the investment period, 1.5% during the harvest period.
20%, with a 6% hurdle rate and full GP catchup
A 3% lifetime administration and custody fee for the nominee structure is charged upfront for investors accessing the fund via the CoInvestor aggregator.
CoInvestor will receive an introduction fee of up to 2% on any transacted fund investment, payable by the fund manager.
News and insights
We can no longer ignore the potential of psychedelic drugs to treat depression
At Imperial College we’ve been comparing psilocybin to conventional antidepressants – and the results are likely to be game-changing
Why The Future Of Mental Health Care May Lie In Psychedelics
The legal use of psychedelics to treat severe cases of psychological disorders, including depression, addiction and PTSD, has exploded in popularity among researchers and investors in the past two years and has garnered even more interest in recent months.
An investment in the Fund carries substantial risk. There can be no assurance that the investment objective of the Fund will be achieved and investment results may vary substantially over time. An investment in the Fund is only suitable for investors who are able to bear the loss of a substantial portion or even all of their investment in the Fund.
The Fund anticipates that investments into early-stage private companies will be primarily in the form of preferred equity, common equity, and convertible securities. The Fund is geography agnostic and will opportunistically consider investments around the world, however we will predominantly focus on plant based and psychedelic-related ventures across North America and Europe given the team’s physical presence and the concentration of in-scope investable opportunities in these regions.
The Fund is a newly formed entity. As such there is no operating history that a prospective investor can evaluate before making an investment in the Fund. No guarantee or representation is made with regards to the investment results of the Fund. There can be no assurance that the investment objective of the Fund will be achieved.
Holders of Interests in the Fund are not permitted to redeem or withdraw their investments from the Fund and will only be able to realise returns on their investments (where applicable) pursuant to distributions and the ultimate liquidation of the Fund.
The Fund is not intended to be a short-term investment. Accordingly, an investment in the Fund is an illiquid investment.
The Fund and its affiliates must comply with various legal and regulatory requirements, including those imposed by the relevant securities laws, tax laws and pension laws in various jurisdictions. If any of those laws change, the legal requirements to which the Fund and its Partners may be subject could differ materially from current requirements.
Whilst the Fund takes a diversified approach to portfolio allocation and management, heightened and prolonged declines could lead to losses and diminished investment opportunities for the Fund, prevent the Fund from successfully executing its investment strategies or require the Fund to dispose of investments at a loss.
The success of the Fund may be dependent on conditions in the global financial markets and macroeconomic conditions throughout the world that are outside the Fund’s control and may be difficult to predict. The financial markets generally are characterised by extensive interconnections among a wide range of actors and stakeholders on a transnational level. Where such interconnections present significant risks to the Fund due to the failure or perceived weakness of any counterparties, there is the potential to expose the Fund to risks.
The Fund invests in equity securities. Equity securities fluctuate in value in response to many factors, including the activities and financial condition of individual companies, the business market in which individual companies compete, industry market conditions, interest rates and general economic, political and social environments.
The Fund might be named as a defendant in a lawsuit or regulatory action stemming from the conduct of its business. In the event such litigation was to occur, the Fund would bear the costs of defending against it and be at further risk if the defence in the litigation were unsuccessful.
Our Fund performance may be negatively impacted by the coronavirus outbreak. In December 2019, the 2019 novel coronavirus surfaced in Wuhan, China. The World Health Organization declared a global emergency on January 30, 2020, with respect to the outbreak and several countries, including the United States, Japan and Australia have initiated travel restrictions to and from China. The impacts of the outbreak are unknown and rapidly evolving.
A widespread health crisis could adversely affect the global economy, resulting in an economic downturn that could impact our ability to source and complete investments as well as our portfolio companies' ability to maintain their operations, complete fundraising rounds, and remain in business. To date the outbreak has not had a material adverse impact on our operations. However, the future impact of the outbreak is highly uncertain and cannot be predicted and there is no assurance that the outbreak will not have a material adverse impact on the future results of the Fund. The extent of the impact, if any, will depend on future developments, including actions taken to contain the coronavirus.
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