European startups in psychedelic healthcare are working to counter stereotypes and bring hallucinogenic substances into the mental healthcare industry. The global prevalence of anxiety and depression has increased by 25% due to the COVID-19 pandemic, resulting in a surge of medications. However, over a third of patients are resistant to conventional antidepressants. Psychedelic treatments offer just one trip alongside therapy that can have lifelong benefits. The industry for mental health care is estimated to be valued at $538bn by 2030. Clara Burtenshaw, co-founder of Neo Kuma Ventures, Europe’s largest VC fund for psychedelic healthcare, shifted to psychedelic healthcare from being a corporate lawyer.
Psychedelic healthcare subsector is expected to see significant development, with Europe leading the charge. Companies such as Atai Life Sciences in Germany and Beckley Psytech in the UK are working on different formulations of psychedelic treatments. The companies’ goal is to patent their intellectual property to generate profits. Psychedelic healthcare opportunities will be diverse and have the potential to extend their applications from psychedelic treatments to the broader health and wellness markets. The industry has a lot of potential, but startups need to play the long game and attract patient capital to gain profits.
