Rocky Mountain high… What’s being billed as the largest psychedelics conference ever is underway in Denver this week with 10K attendees, including music artist Jaden Smith and Whole Foods cofounder John Mackey. NFL star Aaron Rodgers, speaking at the conference, credited ayahuasca with his back-to-back MVP awards. The event is a Colorado housewarming for the psychedelics industry, after the state voted last year to decriminalize psilocybin mushrooms.
Not for sale: Colorado law regulates the supervised use of psychedelic plants (think: in therapeutic treatments) but stops short of allowing recreational sales. First, experts say, more studies are needed.
Buddy system: Colorful Colorado is the second state to decriminalize psilocybin after Oregon. Oregon’s law went into effect this year and allows each city and county in the state to ban the practice if they choose (many have).
Getting a foot in the ’shroom… Psychedelics like magic mushrooms, MDMA, and ketamine have become pharma darlings, as clinical trials show their potential as a treatment for mental-health conditions like PTSD. Investors are racing to tap into a market that analysts say could grow to $8B by 2027. This week, Toms Shoes founder Blake Mycoskie pledged $100M to support research, and NY Mets owner Steve Cohen pledged $5M to the nonprofit hosting the Mile High conference.
Hopes of returns are beating legal concerns… Despite still being early on the journey to FDA approval and recreational sale, investors hope that psychedelics can one day bring them the returns seen in cannabis legalization. VC bucks have poured into the space, with companies like Transcend Therapeutics, Gilgamesh Pharmaceuticals, and Lusaris Therapeutics raising tens of millions this year alone. But even weed hasn’t yet been able to shake its federal classification as a Schedule 1 drug.