Famed investor Michael Novogratz said psychedelics will be the next ‘short-term bubble’ after cannabis — and predicts Compass Pathways will go public this year
Investor and crypto evangelist Michael Novogratz says medicine derived from psychedelic drugs will be the next “short-term” bubble at a hedge-fund conference in Florida.
Novogratz backed Compass Pathways, a UK-based startup working on bringing drugs derived from psilocybin — the active ingredient in magic mushrooms — to market.
He said he expects the startup to go public later this year.
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Famed investor Michael Novogratz made a big bet on psychedelics — one he expects will pay off soon.
“I’m positive this will be the next short-term bubble because it’s such a positive story,” the former Goldman Sachs partner, hedge fund manager, and cryptocurrency evangelist said at the Context Summits conference in the Fontainebleau Hotel on Miami’s South Beach.
To that end, Novogratz has backed UK-based Compass Pathways, a biotech working on bringing drugs derived from psilocybin — the active ingredient in magic mushrooms — to market.
“There’s an awakening that these old drugs, these old plants, magic mushrooms or ayahuasca or the Iboga root from Africa have real positive medicinal qualities,” Novogratz said.
Novogratz predicted the company will go public “before the end of the year.”
A spokesperson for Compass Pathways told Business Insider that “we are always looking at options to ensure continued growth and funding,” but that the company doesn’t comment on “speculation.”
The company raised a $32 million Series A funding round in October of 2018, per the data provider Crunchbase.
Psychedelic drugs hold promise for a range of ailments, from mental health to obesity
While the science is in its early stages, top-notch institutions like Johns Hopkins have developed programs to study the effects of psychedelic drugs including psilocybin, MDMA, ketamine, and others on a range of ailments including depression, obesity, Alzheimer’s, and even smoking cessation.
And Compass Pathways is being advised by Tom …read more
Source:: Business Insider