Investors are always on the lookout for the next big investment opportunity and it looks like psychedelics might be it in 2021. Researchers have lately been exploring the medical benefits that psychedelics have to offer, especially against mental health conditions.
The cannabis industry proved that drugs whose benefits are recently uncovered may provide significant benefits and encourage commercialization. The finding also demonstrated that such efforts can be quite lucrative especially when building companies and industries around such products. Some billionaires have already started putting their money in psychedelic stocks. One such investor is billionaire Peter Thiel who was one of the investors that helped ATAI Life Sciences secure $125 million in funding.
JR Rahn, one of the founders of MindMed noted that traditional treatments used to address conditions such as anxiety, addiction and depression also happen to be highly addictive. They also have some adverse effects and they are not so effective. Meanwhile, researchers have been investigating the benefits and medical properties of psychedelics.
Johns Hopkins and the New York University conducted psychedelics research especially on mental health. The research findings have so far been favorable and have encouraged more investors to fund startups in the segment. The number of companies venturing in the budding psychedelics industry have also been increasing. Some of the companies that investors can add to their watchlist include Mind Medicine Inc., HAVN Life Sciences, Field Trip Health Ltd., and CYBIN Inc.
Now is the ideal time to get in the game
The best time to invest in an industry is when it is in its early stages so that you can tap into potentially huge growth opportunities as the industry gains traction. Now is arguably the best time to buy shares in a psychedelics company because the industry is in its infancy stage and there is a lot of growth to be had moving forward. However, investors need to exercise caution before investing to avoid losing money.
If you wish to invest in a psychedelics, make sure the company has its operations in order. A serious company will try to maintain a good balance as far as its finances are concerned and also make sure that government regulations are in favor to allow strong growth.