How do you spot a BSer in psychedelics?

Its not as hard as you think

Three different people reached out me last week on Twitter asking me this poignant question.  And for good reason.

Psychedelics is a hype-driven industry populated by brilliant and caring individuals - as well as many self-serving, faux experts. Many of the latter have a big online presence and occupy positions of influence (e.g., as VCs).

Figuring out whom to trust and listen to is critical for investors, regulators and operators looking to make investment decisions, create political & regulatory policy and develop business strategy.

Based on my experience in the sector, here are some ‘tells’ to look out for: 

1. They make bold, confident predictions on complex, highly speculative topics. For example, their statements will feature outlandish market projections and therapeutic claims. Often, they will promote seemingly positive developments without telling the more nuanced side of the story (the recent Compass Pathways’ phase 2b study results is one example);

2. They lack experience in what really matters - science, product development or regulatory compliance.  The real industry mountain to climb is the time, capital and effort required to getting a promising compound through the FDA and then into a patient's hand;

3. They lack a track record - Yesterday’s passion was cannabis legalization. Today its the promise of psychedelics. And next year it will be the metaverse. And, being a psychonaut is an insufficient credential to qualify as an industry expert;
 
4. They lack objectivity - Many talking heads are conflicted, seeking to promote their company or investment under the guise of public discourse. Some VCs are among the biggest pimps, shilling for whatever business or compound is in their portfolio.

Obviously, it is difficult to find someone who does not check at least one of these boxes, at least sometimes. And yes, the irony of your author - a psychedelics consultant - calling out BSers is not lost on me.  

I don’t claim to know everything and am constantly learning. I just see this burgeoning industry for what it actually is - and not through naive or rose coloured glasses. When it comes to opinions, caveat emptor.

#psychedelics #strategy #capitalmarkets #venturecapital #investors