#208: Brom Rector - Founder of Empath Ventures - Psychedelics 101

Brom Rector, Founder, and GP of Empath Ventures. Prior to founding Empath, Brom spent 7 years as a portfolio manager and quantitative researcher - most recently managing a global macro portfolio for Crabel Capital Management - a Los Angeles-based hedge fund with $8B AUM. After leaving Crabel in 2020, Brom started The Integration Conversation, a long-form video podcast that covers the psychedelics industry from an investing perspective. The research that went into this podcast and the connections it established laid the groundwork for what would become Empath Ventures.Show more

On this episode, Brom gives a breakdown on the breakdown of the Psychedelic industry and landscape. They discuss why Brom raised a fund to target psychedelics and how he's investing the money and why it's one of the largest opportunities in the world. Listen to hear Brom’s thoughts on what the next 10 years of psychedelics might look like and much more!

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00:30 - Brom’s Background and Career in Psychedelics

06:07 - Why have psychedelics been illegal and shunned from society?

10:12 - What’s big pharma’s role in this?

11:33 - What is the chemical reaction happening inside the body when one takes psychedelics?

13:22 - Are all psychedelics man-made or are there any occurring in nature?

14:50 - How far back do psychedelics go in human history?

16:08 - How big is this industry from an economic standpoint?

18:58 - How do we define what is legal and illegal in the psychedelic space?

21:04 - Does FDA approval make it legal or does there need to be a law passed?

21:42 - What needs to happen for the FDA to change their minds on psychedelics after all these years?

23:05 - Would these drugs displace other opiate treatments?

24:15 - The Hype Around Psychedelics in Society

25:39 - What parts of the industry interest you the most?

27:49 - Thoughts on Micro-Dosing

29:09 - Advancements in Ways to "Stop” the Trip

30:27 - Brom’s Personal Experiences with Psychedelics

32:45 - Integration Therapy

33:55 - Do you do any pre-planning or set intentions for psychedelic experiences?

36:25 - Empath’s intentionalities: Receptor Targets, Indications, and Time to Market

40:04 - What does an early-stage psychedelic company look like?

41:28 - What becomes the IP in these companies?

43:09 - Compass Pathways

44:44 - The Different Experiences from Different Psychedelics

46:26 - Data on Effects of Psychedelics on Minors

48:14 - When are human trials introduced for new molecules?

50:10 - What’s going to happen in this space over the next decade?

55:34 - Is there any merit in psychedelics as a preventative?

59:14 - What’s happened to the brain of people who become depressed?

1:01:06 - What do you predict to be the first mainstream psychedelics?

1:02:31 - How is Oregon doing since decriminalizing drugs?

1:03:09 - How can people track the progress of clinical trials and
legislation?

1:03:52 - Wrap Up & Contact

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