Palo Santo Launches $35M Psychedelic Healthcare Venture Capital Fund

Palo Santo

Palo Santo, a Chicago, IL-based U.S.-based psychedelic investment firm, launched its first fund with an initial $35m in capital and an active portfolio of 20 companies.

Co-founded in 2020 by Daniel Goldberg, Tim Schlidt and Tony Eisenberg, Palo Santo is launching a diversified venture fund focused on tackling the global mental health crisis by investing in innovative psychedelic-based and adjacent therapies that are poised to shape the future of psychiatry and fields beyond.

Palo Santo is targeting early-stage, high-growth opportunities within biopharma, drug development, digital therapeutics, healthcare services and tech enabled solutions. These businesses are positioned to have a profound impact on treating a wide range of conditions such as depression, PTSD, anxiety, OCD, addiction, chronic or neuropathic pain, neurodegenerative diseases and a range of inflammatory-related illnesses.

To date, the firm has partnered with and funded more than 20 portfolio companies with notable investments such as atai Life Sciences (NASDAQ: ATAI), Reset Pharma, Field Trip Health, Tactogen, Eleusis, Bexson Biomedical, Ksana Health, neuroCare, Bright Minds, Diamond Therapeutics and Gilgamesh, among others.

The team is further supported by scientific advisors including:

  • Charles Nichols, one of the world’s leading psychedelic pharmacologists; 
  • Julie Holland, renowned psychiatrist, psychopharmacologist and author; 
  • David Sherman, a medicinal chemist and head of the University of Michigan psychedelic collective; and
  • John Greden, chair emeritus, University of Michigan Department of Psychiatry and the founder of the University of Michigan Depression Center.