EXCLUSIVE: Phyto Partners' Larry Schnurmacher Says 'There Are Some Unicorns Among Us' In Psychedelics Sector

Larry Schnurmacher, one of Phyto Partners’ cofounders has long experience in emerging markets. His venture capital fund has greatly supported 35 cannabis companies since 2015, and, with Pytho Psyche, he began investing in psychedelics-oriented companies. More investment in this sector seems to be on the way.

Schnurmacher told attendees of the inaugural Benzinga Psychedelics Capital Conference on Tuesday that he believes a new “megatrend” of neurowellness and brain health is beginning, with lots of room to invest in the psychedelics sector.

With more and more changes in how we understand mental health (such as the World Health Organization declaring mental health problems as one of the worst health problems in the world), changes in public opinion regarding psychedelics substances and ongoing FDA trials for novel drugs, the psychedelics sector is becoming more investable. 

According to Schnurmacher, “there is the real possibility that psychedelics will become a medicine”, with a market much broader than just for treating depression. “The market for psychedelics to help neurotypical people, so-called ‘healthy normals’, as most of us identify, on a much broader scale is enormous,” he explained.

With research showing that psychedelic drugs present more benefits when compared to traditional medicines, with fewer side effects and less dependency, there is the possibility that these new substances will fundamentally alter how we think about neural health.

“I believe brain health or, let’s say, mind wellness, will be addressed proactively and preventably, in the same we do our physical health,” Schnurmacher added. The same way we do exercise to keep the body healthy, psychedelics could be used to keep “the brain thinking better.”

With these convictions, Schnurmacher said that Phyto will be investing in some of the companies present at the Benzinga Conference: “I truly believe there are some unicorns among us.”

Phyto announced earlier the launch of a new private equity fund focused on businesses that operate in mental wellness.