Atai Life Sciences AG, a German startup, announced a new funding round that values the company at roughly $2 billion, Bloomberg reports.
The Details: Atai is looking at ways of using magic mushrooms to treat mental health disorders. “Once stigmatized as hippie drugs, hallucinogenic substances like psilocybin have in recent years gained credibility as medical treatments for depression and other conditions.”
It’s Going Down: The company confirmed a $157 million Series D fundraise, led by existing investors Christian Angermayer (the founder) and Peter Thiel’s investment firm Thiel Capital.
- Biotech fund Woodline Partners also joined the party as a new investor.
The Plan: “Atai is acquiring and incubating treatments for conditions including depression, anxiety, addiction, and other mental health disorders. Proceeds from the fundraising will support the expansion of Atai’s development pipeline. The company has more than a dozen drug candidates in trials including psilocybin, the hallucinogenic compound in magic mushrooms, as well as ibogaine, an ancient African plant it’s testing for its potential to cure addiction.”
Down The Road: Atai, which is based in Berlin, has plans to bring on Credit Suisse and Citigroup for a potential U.S. IPO. It could take place as early as Q2, but is still private.