Over 100 Investors Participated in Telehealth Funding Rounds in Q1 2020

COMPASS Pathways, a provider of evidence-based digital mental health programs, has raised $80 million in Series B funding.

The new funds are expected to help further develop psilocybin therapy, advance the company’s preclinical pipeline, and build new academic and clinical research partnerships.

Over 100 million people have treatment-resistant depression, and depression remains the leading cause of disability worldwide. The company’s Psilocybin Therapy, which is approved by the FDA, has a potential treatment for treatment-resistant depression, according to the company.

Presently, the company is conducting a large-scale psilocybin therapy clinical trial in 20 sites across nine countries in Europe and North America.

“Our mission has always been to accelerate patient access to evidence-based innovation in mental health. This is more important than ever now, with COVID-19 challenging our mental resilience. This fundraise shows that our investors recognize this urgent need for innovation in mental health, and will enable us to do more research and development, bringing therapies safely to those who need them, as quickly as possible,” said George Goldsmith, CEO, and Co-founder of COMPASS Pathways.

The Series B funds came from existing investor, including ATAI Life Sciences, and new investors, Able Partners, Founders Fund, Camden Partners Nexus, Perceptive Advisors, Skyviews Life Science, Soleus Capital, and McQuade Center for Strategic Research and Development (MSRD), a member of the global Otsuka family of pharmaceutical companies.

As part of the investment, Robert McQuade, President of the MSRD, has joined the COMPASS board.

“We are dedicated to investing in innovative and creative products that contribute to the lives of people everywhere. New innovations are desperately needed for people with treatment-resistant depression. COMPASS’s scientific rigor, and the FDA Breakthrough Therapy designation for their psilocybin therapy program, position the company as a long-term leader in the field,” said Robert McQuade.

Founded in 2016, the London-based company has raised over $110 million to date, including a $31 million Series A funding round in 2018.

Digital mental health companies raised over $520 million since 2013, according to Mercom database. Recently, Digital mental health company SilverCloud Health secured $16 million in funding, led by MemorialCare Innovation Fund, with participation from LRVHealth, OSF Ventures, UnityPoint Health Venture, and existing investors.