Despite strong tailwinds, psychedelics companies aren’t attracting investors like they used to.
After raising a record-high amount of funding in 2021, the psychedelics space seems to have hit a bump in the road.
A funding drought, plummeting valuations, and the recent shutdown of Ketamine Wellness Centers — one of the largest chains of ketamine clinics — signal that investors may have soured on the space.
In this brief, we use CB Insights data to assess the current state of the psychedelics market. We look at the following data points:
- Total funding & deal share by stage
- Top-funded companies & exits
- Valuations
Total funding & deal share by stage
There are over 300 psychedelics companies, operating across areas from drug R&D to digital health to clinics, retreats, & treatment centers.
After peaking at $658M across 59 deals in 2021, funding in the space has significantly dropped. 2023 has seen just 9 deals and $21M raised so far.
The majority of new deals since 2021 have been early-stage rounds (seed/angel and Series A), indicating the space remains nascent.
However, the extreme scarcity of mid- and late-stage rounds raises concerns about these companies’ ability to scale with viable business models.
