Journey Clinical Raises $3M for Psychedelic Therapy Access

The Rising Trend of Psychedelic Companies

Currently, there is significant interest in companies focused on psychedelic therapies. Compass Pathways, for example, is conducting research utilizing psilocybin, a compound found in magic mushrooms, as a potential treatment for depression. To date, the company has secured $290 million in funding.

Atai Life Sciences, with backing from PayPal co-founder Peter Thiel, successfully completed an IPO, raising $258 million. This activity hasn't gone unnoticed within the technology sector, and established business strategies from health and wellness startups are now being applied to the field of psychedelics.

Journey Clinical: A New Entrant

Journey Clinical, a New York City-based startup, recently secured $3 million in seed funding, led by Fifty Years, a venture capital firm from San Francisco. Additional investors included Neo Kuma Ventures, Palo Santo, PsyMed Ventures, Lionheart Ventures, Christina Sass (co-founder of Andela), Edvard Engesæth, MD (co-founder of Nurx), and Hans Gangeskar (co-founder of Nurx).

Journey Clinical is among a growing number of companies exploring psychedelic-assisted psychotherapy. Specifically, they are focusing on ketamine-assisted psychotherapy (KAP), which utilizes ketamine to address conditions like depression, anxiety, PTSD, and trauma.

NUE Life Health, a Miami-based startup, raised $3.3 million in seed funding in June for a similar purpose. Other companies active in this area include Field Trip and Mindbloom.

Growing Demand for Mental Health Solutions

These startups are responding to a significant need for effective treatments for depression and anxiety. Prior to the COVID-19 pandemic, the National Center for Health Statistics estimated that approximately 50 million Americans were affected by these conditions.

The pandemic has undeniably worsened the situation, with some estimates suggesting a doubling of these figures. This has created an increased demand for innovative mental health solutions.

Challenges and Opportunities in the Market

The market for legal psychedelic therapies is still developing and presents certain challenges. Journey Clinical notes a significant disparity, with over a million licensed mental health professionals lacking the necessary infrastructure to provide these treatments due to limited access to prescribing clinicians.

Conversely, patients often struggle to locate psychotherapists authorized to prescribe psychedelics as part of their treatment plans.

Journey Clinical’s Approach

Journey Clinical employs a “decentralized clinic model” that enables psychotherapists to offer legal psychedelic therapy, beginning with ketamine, within their existing practices. The company manages the pharmacological aspects of treatment, while participating psychotherapists focus on the psychotherapy component.

Treatment plans are individually tailored to address each patient’s specific requirements.

The Founder’s Story and Vision

Jonathan Sabbagh, co-founder and CEO of Journey Clinical, was personally diagnosed with PTSD. Following a positive experience with psychedelics, he pursued further education in clinical psychology and subsequently co-founded the company.

He stated: “We are on the cusp of a significant change in the mental health field. Psychedelic-assisted psychotherapies represent a promising new treatment avenue, offering clinicians the potential to address the escalating global mental health crisis.”

In an interview with TechCrunch, Sabbagh added: “Our research indicated that the primary obstacle for therapists offering KAP was access to a qualified prescribing physician. Our alpha testing confirmed that providing access to a trained medical team and establishing a robust care management system would resolve a critical barrier to widespread KAP adoption.”

Revenue Model

Journey Clinical operates with two distinct revenue streams. Psychotherapists pay a $200 monthly membership fee, granting them access to services such as prescriber access, an electronic health record (EHR) system (via a white-label solution), KAP training materials (developed by a specialized training company), a listing in Journey’s directory, and a peer community.

Patients remit payment directly to Journey Clinical for medical services, including a $250 intake consultation fee and $150 for subsequent follow-up consultations.

Investor Perspective

Ela Madej, Founding Partner at Fifty Years, commented: “My aspiration is for a future where individuals affected by trauma, anxiety, or depression are no longer resigned to feelings of helplessness. Fortunately, effective psychedelic treatments for mental health are available, but they must be delivered responsibly, with appropriate screening, protocols, and ongoing support. We are highly impressed by Journey Clinical’s ambitious plan to empower psychotherapists to provide enhanced care to their patients.”

The Team Behind Journey Clinical

The Journey Clinical team also includes Kyle Lapidus MD, Ph.D., a board-certified psychiatrist with over 20 years of experience, including extensive work with ketamine, and Brigitte Gordon DNP, a professor at Columbia University and a contributor to the Multidisciplinary Association for Psychedelic Studies (MAPS).