There has been a resurgence in the debate about the clinical use of Psychedelic therapies or psychedelic-assisted psychotherapy (PAP). There’s been increased legalization of substances and ketamine has been the most-studied psychedelic drug for its promising response to treating mental health conditions especially when it comes to healing patients from past trauma as well as anxiety and depression. Innerwell is a newly-launched telehealth platform that provides ketamine-assisted psychotherapy. The company focuses on a coordinated care model to unlock a new care pathway for patients for whom traditional pharmacological routes have not worked. The company takes a holistic approach by offering peer-to-peer support, guided meditations, and other resources in addition to therapy sessions and access to medicine. Initially focusing on virtual care, Innerwell does plan to expand to offer in-person care as well as add other psychedelics to its offering like MDMA when they are FDA-approved.
AlleyWatch caught up with Innerwell Founder and CEO Lisa Kennedy to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We emerged from stealth after raising $3M in pre-seed funding led by Ellie Wheeler at Greycroft, with participation from Looking Glass and Max Ventures. Several prominent angels have also invested, including Alex Cohen; Saharsh Patel, COO of Canvas Medical; Patrick Yang of Amity VC; Aaron Holiday of 645 Ventures; and Nnamdi Okike at 645 Ventures.
Tell us about the product or service that Innerwell offers.
Innerwell is the first company focused on commercially scaling true ketamine-assisted psychotherapy. Patients who are diagnosed by licensed medical professionals have the option to receive therapy during their psychedelic experience. We’re the first platform in this quickly-growing psychedelic telehealth space to place a strong emphasis on the therapy element of treatment, rather than the psychedelic component. By offering this as a telehealth platform, we aim to leverage the biological and cognitive effects of psychedelics combined with therapy to improve patient outcomes and ultimately help as many people as possible.
What inspired the start of Innerwell?
Having an up-close view of things like trauma, grief-induced depression and anxiety, I understand how overwhelming these conditions can be. I also understand the helplessness and heaviness that individuals and families experience when they’re seeking relief. When a dear friend brought me the research on psychedelics, it was through this lens that I understood their potential to help many people lead healthier, happier lives. After immersing myself in the research, I became convinced of the therapeutic possibilities of psychedelics when delivered in a carefully coordinated care model.
Psychedelic medicine has a long lineage, and ketamine has been used as an FDA-approved anesthetic for more than 50 years. We also know that the best approach to mental health care is highly personalized for each individual, and there is a growing body of evidence and research showing the combination of psychedelic medicine and psychotherapy is especially beneficial for those suffering from ongoing mental health conditions like anxiety and depression. The founding and operating team includes folks from Oak Street Health, Span Health (acq. by Eight Sleep), Calm, Coinbase, Nanit and Ericsson who all came together because they want to help enable a better life for those whom it may benefit the most from this kind of therapy.
How is Innerwell different?
Unlike other psychedelic health startups, Innerwell is focused on offering a unique care pathway that emphasizes the therapy part of treatment, with medicine playing a supporting role. We are also delivering a truly integrated care model that combines medicine, therapy, ongoing digital care via peer-to-peer support with other patients undergoing similar treatments, and an app with guided meditations and other helpful content. Once they’ve completed trials and received FDA approval, we’ll be working towards expanding the gold standard model of psychedelic therapy for treatment aided by other groundbreaking medicines like psilocybin and MDMA.
What market does Innerwell target and how big is it?
We’re entering a psychedelics market expected to grow to more than $10B within the next five years. We also recognize that the already-critical need for integrated and accessible mental health care is only growing due to Covid-19 and the ongoing challenges it will present, so we want to be adaptable to a new future where hybrid and telehealth platforms will dominate.
What’s your business model?
We are building a care delivery company that connects patients via a telehealth platform with licensed medical professionals and psychotherapists. Patients sign up for treatment and if qualified, are given access to a web and mobile app for appointments and care team interactions, as well as asynchronous resources and guidance. Clinicians are part of the Innerwell network and use a virtual platform to deliver patient care. We are also working towards insurance coverage and reimbursement support in order to widen patient access.
What are your post-COVID office plans??
As a telehealth platform, our primary focus is on virtual, tech-supported medicine so that we can provide the most access to care possible. That said, we also plan to offer in-person therapy in the future as needed for patients whose needs are best suited for this kind of care, and when future medicinal components are cleared for treatment.
What was the funding process like?
Any time I get to spend time with smart people is invigorating for me, and this fundraising process was no exception. Beyond the capital support we received, I spent a lot of time with a group of potential investors who shared knowledge generously, while also asking challenging questions–which in turn helped me refine my own thinking. We were fortunate in that we had multiple options, so we were able to prioritize fit, trust and our conviction that we wanted to have the right long-term partners with us on our journey. I’m thrilled by the outcome.
What are the biggest challenges that you faced while raising capital?
A certain level of taboo is unfortunately still associated with psychedelics, and that can impact investors’ decisions about which companies they fund. For any kind of digital health company, there’s also an added layer of regulation and compliance that some funds are simply not structured to deal with when investing.
What factors about your business led your investors to write the check?
Our funders backed us largely because of our combined experience clinically, as founders, and as marketers, but also because of our unique emphasis on therapy. There are many companies out there trying to solve this problem, but none have centered the therapeutic component in the way we have.
Our funders backed us largely because of our combined experience clinically, as founders, and as marketers, but also because of our unique emphasis on therapy. There are many companies out there trying to solve this problem, but none have centered the therapeutic component in the way we have.
What are the milestones you plan to achieve in the next six months?
As we launch from stealth, we are looking to hire a founding class of 10-15 licensed therapists and prescribing clinicians who want to join Innerwell. In addition to their individual expertise, highly advanced training is required to work with patients who are prescribed mind-altering medications, so we will send our therapists and clinicians to foundational courses in ketamine-assisted psychotherapy from Fluence Training. In addition, we’re also hiring for roles in operations, engineering, and product as we begin scaling the business and signing up patients.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
A brilliant fellow founder shared this with me: her advice was to treat the cash left in the bank as the round you just raised, extend it as long as possible, and focus on achievable milestones that catalyze the next round, regardless of size.
Where do you see the company going now over the near term?
In the near term, our main focus is building a modern platform for patients and providers to enable quality care, as well as expanding the clinical team so that we can make a meaningful impact on people’s lives. We expect to start working with our first patients as early as August and have an early access signup on our website.
What’s your favorite outdoor dining restaurant in NYC?
I am an Upper West Sider so my pick is more about location than it is about the food. The Ellington in the Park (Riverside Park) is a great place for a twilight cocktail while watching the sunset over the Hudson River.
