Palo Santo Fund

What Palo Santo Fund does

Palo Santo Fund is a venture capital firm founded in 2020 and headquartered in Highland Park, United States, that invests exclusively in next-generation neuroscience and mental health companies. The fund targets early-to-mid stage biotech and pharmaceutical companies developing breakthrough therapeutics for depression, PTSD, anxiety, and other CNS disorders, with particular emphasis on psychedelic medicine and enabling brain-health technologies. Its portfolio spans 27 companies across the full mental-health stack, including psychedelic chemistry developers (Gilgamesh Pharmaceuticals, Beckley Psytech, Cybin, Reunion Neuroscience, Transcend Therapeutics), AI-driven drug discovery firms (Fauna Bio, Pangea Bio), digital neurodiagnostics (Beacon Biosignals), synaptic biology platforms (Syndeio Biosciences), and care delivery operators (Journey Clinical, neurocare, Ksana Health).

The fund generates returns through equity ownership in portfolio companies, with management fees and carried interest on invested capital as standard VC economics. Deal sourcing is driven by an in-house team of PhD-level neuroscientists and biotech operators (Partners Daniel Goldberg and Edny Inui, Ph.D., MBA; Principal Adrienne Jo, Ph.D.), backed by a Scientific Advisory Board of leading clinicians and academics. The firm does not publicly disclose fund size, AUM, management fee rates, or limited partner composition. Portfolio-company milestones have included 8 FDA Breakthrough Therapy Designations in psychedelic medicine, over 350 FDA clinical trials involving psychedelics in progress across the portfolio, and two major pharma exits — AbbVie's $1.2 billion acquisition of Gilgamesh's lead program and Otsuka's $1.2 billion acquisition of Transcend — totaling $2.4 billion in acquisition value. Most recently, Palo Santo participated as an investor in Beacon Biosignals' upsized Series B extension of over $97 million (April 2026), alongside Samsung Next, Kicker Ventures, and JSL Health.

Name

Palo Santo Fund

Legal name

Palo Santo

Website

https://palosanto.vc

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

Palo Santo Fund is a venture capital firm founded in 2020 that invests in early-to-mid stage neuroscience and mental health companies. It backs 27 portfolio companies spanning psychedelic therapeutics, AI-driven drug discovery, digital neurodiagnostics, and brain-health care delivery.

Ownership category

akta.pro rank

Product category

Venture Capital — Mental Health Therapeutics Fund

NAICS

Other Investment Pools and Funds (5259), Other Financial Investment Activities (5239)

SIC

Investors, Nec (6799), Finance Services (6199)

akta.pro primary industry

SDG / Thematic Sustainable Investment Funds (FSANAJAN)

akta.pro secondary industry

Alternative Investments for Private Wealth (Hedge Funds, PE/VC Access, Private Credit) (FSAAABAI)

Keywords

• Venture capital fund
• Mental health therapeutics
• Neuroscience investments
• Psychedelic medicine fund
• Biotech equity investing

Headquarters

HQ city

Highland Park

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Fund Management / Investment Returns: Palo Santo generates returns through equity ownership in portfolio companies. As a venture capital fund, returns are realized through exits via acquisitions (such as AbbVie's $1.2B acquisition of Gilgamesh and Otsuka's $1.2B acquisition of Transcend) or public offerings. The fund collects management fees and carries interest on invested capital.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

Palo Santo Fund is a venture capital firm that invests equity capital in early-to-mid stage neuroscience and mental health companies developing breakthrough therapeutics, psychedelic medicines, and enabling brain health technologies. The fund provides capital, strategic guidance, and industry connections to portfolio companies across the neuroscience and mental health ecosystem, with a portfolio spanning 23 to 27 companies focused on depression, PTSD, anxiety, and other CNS disorders.

Product overview

Palo Santo Fund is a venture capital firm specializing in mental health therapeutics investments. The firm does not offer a single unified product but rather provides investment capital and support to a portfolio of 27 neuroscience and mental health companies. The portfolio spans neurological therapeutics, next-generation psychedelic therapies, and brain health technologies. Key portfolio companies include Beacon Biosignals (AI-driven EEG diagnostics), Fauna Bio (AI-powered drug discovery), Pangea Bio (AI for molecule discovery), and Ksana Health (digital mental health tools), among others developing treatments for depression, PTSD, anxiety, and other CNS disorders.

Differentiator

Problem solved

Functional benefit

Quantifiable outcome

• Two portfolio companies acquired for $1.2B each ($2.4B total acquisition value)
• +1 more outcomes

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability6 records

Scale indicators5 records

Recent moves6 records

Expansion highlights5 records

Emerging players

• Atai Life Sciences: Public clinical-stage biopharmaceutical platform company with multiple subsidiaries developing psychedelic and mental health therapies; also a Palo Santo portfolio company. Comparable as both a portfolio asset and a strategic peer shaping the psychedelic therapeutics category.
• Compass Pathways: Public clinical-stage mental health care company developing psilocybin therapy for treatment-resistant depression. Comparable as a peer/portfolio candidate in the psychedelic therapeutics space Palo Santo targets.
• Mind Medicine (MindMed): Public clinical-stage psychedelic medicine company developing CNS therapies, including LSD-based and MDMA-based candidates. Comparable as a sector peer defining the psychedelic therapeutics category.

Broad incumbents

• RA Capital Management: Established healthcare and life-sciences crossover/VC firm with broad therapeutic mandate but active exposure to CNS and mental health. Comparable as a competitor for the same clinical-stage biotech deals and an LP benchmark for thematic VC.
• Andreessen Horowitz (a16z Bio): Major venture firm's bio/health fund actively investing in mental health, psychedelic, and neurotech companies. Comparable as a larger competitor with similar thematic interest in CNS innovation.
• ARCH Venture Partners: Large, established life-sciences venture firm with broad biotech mandate and active CNS/neuroscience investing. Comparable as a much larger competitor sourcing similar clinical-stage mental health assets.
• Section 32: Venture firm founded by Bill Maris focused on healthcare, life sciences, and technology, with active exposure to psychedelic and mental health companies. Comparable as a larger thematic health investor.

Direct peers

• Apeiron Investment Group: Single-family office and early-mover psychedelic-medicine investor backing companies such as Compass Pathways and Atai. Highly comparable to Palo Santo given shared thematic focus on psychedelic therapeutics and mental health.
• Negev Capital: Dedicated psychedelic-medicine venture fund investing across the same psychedelic and CNS therapeutic landscape as Palo Santo. Direct peer given overlapping thesis, asset focus, and limited partner base in the psychedelic VC niche.
• JLS Health: Healthcare-focused investor that co-invested alongside Palo Santo in Beacon Biosignals' Series B extension. Comparable as a thematic health investor participating in similar CNS/neurotech syndicates.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights5 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments18 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Palo Santo Fund