# Mindstate Design Labs **Source:** https://geo.sig.ai/brands/mindstate-design-labs **Vertical:** Healthcare **Subcategory:** General **Tier:** Emerging **Website:** mindstate.design **Last Updated:** 2026-04-14 ## Summary Non-hallucinogenic psychedelic drug developer using AI to design therapeutics without dissociation; $25.5M raised backed by OpenAI/Neuralink founders with FDA Phase I approval for MSD-001 in 2024. ## Company Overview Mindstate Design Labs is a Los Angeles-based clinical-stage biotech developing non-hallucinogenic psychedelic therapeutics — using computational neuroscience and machine learning to engineer psychedelic-inspired molecules that activate the neural mechanisms associated with therapeutic benefit (neuroplasticity, serotonin receptor modulation) while minimizing or eliminating the dissociative hallucinogenic effects that limit psychedelic therapy to clinical settings. A Y Combinator W21 graduate, Mindstate raised $25.5 million total, achieved $1.3 million in revenue in 2024 with a 19-person team, and received FDA and EMA approval for Phase I human trials of lead program MSD-001 in 2024, backed by founders of OpenAI, Neuralink, Coinbase, and Initialized Capital. Mindstate's AI platform models the binding profiles and downstream signaling of psychedelic compounds across multiple serotonin receptor subtypes (5-HT2A, 5-HT2C, etc.) to predict which modifications produce therapeutic neuroplasticity effects with minimal perceptual distortion. This computational drug design approach — screening thousands of molecular variants in silico before synthesis — enables faster iteration toward the therapeutic-without-hallucinogenic profile that would make psychedelic-inspired drugs prescribable in standard clinical settings rather than requiring 8-hour supervised sessions. In 2025, Mindstate Design Labs competes in the psychedelic medicine and CNS drug discovery space with COMPASS Pathways (psilocybin for TRD, NASDAQ: CMPS), MindMed (LSD/psychedelic therapeutics, NASDAQ: MNMD), Lykos Therapeutics (MDMA-assisted therapy, FDA-rejected in 2024), and the broader non-hallucinogenic psychedelic programs at Delix Therapeutics and Entheogen Biosciences for psychiatric disorder therapeutics. The 2024 FDA rejection of MDMA-assisted therapy for PTSD created a setback for the psychedelic medicine field, highlighting the regulatory challenge of approving compounds with significant subjective effects. Mindstate's non-hallucinogenic approach directly addresses this regulatory barrier. The prestigious backer names (OpenAI/Neuralink founders, Initialized Capital) validate the AI drug design thesis. The Phase I FDA approval is the critical 2025 milestone. The 2025 strategy focuses on completing Phase I safety data for MSD-001, expanding the molecular candidate pipeline, and building the regulatory relationships that will be critical for Phase II/III pathway. ## Frequently Asked Questions ### What is Mindstate Design Labs? Mindstate Design Labs is a clinical-stage AI neuroengineering platform founded in 2020 that develops novel psychoactive drug classes for psychiatric disease indications. The company pioneers non-hallucinogenic psychedelic therapeutics using computational neuroscience and machine learning. ### What products and services does Mindstate Design Labs offer? Mindstate Design Labs offers an AI drug discovery and neuroengineering platform that develops psychedelic therapeutics, specifically non-hallucinogenic drugs for psychiatric disorders. Their lead program is MSD-001, which has received FDA and EMA approval for Phase I human trials. ### Who are Mindstate Design Labs' target customers? Mindstate Design Labs serves pharmaceutical companies and mental health providers seeking innovative treatments for psychiatric disorders without psychedelic side effects. ### When was Mindstate Design Labs founded? Mindstate Design Labs was founded in 2020 and participated in Y Combinator's Winter 2021 (W21) cohort. ### Where is Mindstate Design Labs located? Mindstate Design Labs is based in Los Angeles, California. ### How much funding has Mindstate Design Labs raised? Mindstate Design Labs has raised $25.5M in total funding, including a $12.7M Series A round in November 2024. The company is backed by prominent investors including the founders of OpenAI, Neuralink, Coinbase, Instacart, AngelList, and Twitch, as well as Initialized Capital. ### What are Mindstate Design Labs' key achievements and metrics? As of 2024, Mindstate Design Labs achieved $1.3M in revenue with a 19-person team. The company received FDA and EMA approval for Phase I human trials of its lead program MSD-001 in 2024. ### What technology and approach does Mindstate Design Labs use? Mindstate Design Labs uses computational neuroscience and machine learning through their AI neuroengineering platform to develop novel psychoactive drug classes. Their approach focuses on creating non-hallucinogenic psychedelic therapeutics for psychiatric diseases. ### How can I contact or work with Mindstate Design Labs? Specific contact information is not provided in the available materials. Mindstate Design Labs is based in Los Angeles, California and works with pharmaceutical companies and mental health providers. ### What are the latest developments at Mindstate Design Labs? In 2024, Mindstate Design Labs secured a $12.7M Series A funding round in November, received FDA and EMA approval for Phase I human trials of MSD-001, and generated $1.3M in revenue. The company has grown to 19 employees and continues to advance its clinical-stage platform. ## Tags healthtech, north-america, b2b --- *Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*