Alto Neuroscience completed a $25 million equity investment by new investor, Alpha Wave Ventures. This brings Alto’s total Series B funding to approximately $60 million and total equity capital raised to approximately $100 million since the company was founded in 2019. In addition, Alto entered into a credit facility with K2 HealthVentures for up to $35 million, allowing access to additional capital and flexibility as the company advances its clinical-stage pipeline. Funding to date will support Alto through a total of four Phase 2 readouts with four novel drug candidates across three indications.
In conjunction with the Series B financing, Chris Dimitropoulos, managing director of biotechnology investments at Alpha Wave Global, has joined the Alto board of directors.
“We have been diligent in advancing our pipeline of diverse product candidates and these investments exemplify our shared commitment to develop novel treatments for numerous mental health conditions,” Nick Smith, chief financial officer of Alto Neuroscience, said. “This additional equity investment and flexible credit facility enable us to complete four definitive studies that will, if successful, enable future registrational studies in indications of high unmet medical need. We are pleased to be working with Alpha Wave and K2, among our other supportive investors, to advance Alto’s mission through crucial validation points in the coming years.”
“This financing is a testament to our confidence in Alto’s science, platform, team, and ability to execute,” Chris Dimitropoulos of Alpha Wave Global, said. “We are encouraged by their unique approach backed by over a decade of human data exploring brain mechanisms and patient heterogeneity. The recent positive clinical results in depression provide confidence that a precision approach in this field is achievable and likely to drive better outcomes for patients.”
“Through effectively leveraging their Precision Psychiatry Platform, Alto is at the forefront of discovering and developing truly differentiated medicines for a variety of people living with mental health conditions,” Parag Shah, founding managing director and CEO of K2 HealthVentures, said. “We look forward to supporting the advancement of the company’s innovative pipeline of precision medicines for the brain as the team seeks to redefine psychiatric drug development.”
