Psychedelics-Drug Startup Raises $24 Million Ahead of IPO

Some investors are biting, including Toms Shoes founder Blake Mycoskie, Bail Capital, Cannell Capital and Grey House Partners, all of whom participated in the pre-public funding round.

Co-founded by JR Rahn, a former Uber employee and Y-Combinator alumnus, MindMed will make a direct listing March 3 through a reverse takeover of Broadway Gold Mining on the NEO Exchange, based in Toronto.

Mr. Rahn says MindMed is developing what he hopes will become the “antibiotic for addiction,” based on a nonhallucinogenic derivative of ibogaine, a psychoactive compound that has been used for more than 50 years to treat addiction.