Palo Santo, a newly-created venture capital fund with an eye on psychedelic medicines, announced its official launch on Thursday.

The fund has raised an initial $35 million in capital and currently holds an active portfolio of 20 companies, including investments in Atai Life Sciences ATAI, Reset Pharma, Field Trip Health FTRP FTRPF, Tactogen, Eleusis, Bexson Biomedical, Ksana Health, NeuroCare, Bright Minds DRUG, Diamond Therapeutics and Gilgamesh, among others.

The fund was founded by Daniel Goldberg, Tim Schlidt and Tony Eisenberg.

"This is a moment of validation for our model, and we will continue to support our thesis by backing talented founders who are creating innovative approaches to mental health and addiction treatment,” Goldberg said

Schlidt said that psychedelics represent a paradigm shift in treating a range of illnesses, but a sense of scientific rigor and thoroughness is still required in investing across this ecosystem. 

“Palo Santo applies a meticulous and selective approach to investing and heavily leverages its network of scientific advisors and academicians to evaluate opportunities,” Schlidt explained.

The psychedelics fund will be an active participant and work with the management of the companies it invests in, said Schlidt in an interview with Reuters.

Advisors to the fund include Charles Nichols, Julie Holland, David Sherman and John Greden.

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