Alto Neuroscience raises $25 million in equity from Alpha Wave Ventures

Alto Neuroscience Inc. received additional $25 million in equity investment from Alpha Wave Ventures, bringing total Series B raised funding to approximately $60 million and total equity capital raised to approximately $100 million since it was founded in 2019, along with a recently closed credit facility agreement with investment firm K 2 HealthVentures for up to $35 million.

Alto has created a precision psychiatry platform that can match each patient with the right medicine. It uses EEG activity, behavioral task performance, wearable data, genetics, and other factors to measure brain biomarkers.

The company's work in identifying and categorizing core domains of mental function cognition, emotion, and sleep processes has resulted in a multiple-modality approach that supports its clinical-stage pipeline, which includes novel drug candidates for depression, PTSD, and other mental health conditions.

All grant funding will be used to perform four Phase 2 clinical trials with four novel drug candidates across three health indications, as well as the continued evolution of Alto's Precision Psychiatry Platform.

In conjunction with Series B financing, Alpha s managing director of biotech investments Chris Dimitropoulos has joined Alto's board of directors.

The additional equity investment and the flexible credit facility will allow the company to complete four definitive studies that, if successful, would open the door to future registrational studies in indications of unmet medical needs, according to Nick Smith, Alto's CFO.

Smith concluded that we are pleased to work with Alpha Wave and K 2, along with other supportive investors to advance Alto's mission through crucial validation points in the coming years.

On behalf of Alpha, Chris Dimitropoulos stated that the funding is a testament to the fund's confidence in Alto's science, platform, team and ability to execute.

They 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 give confidence that a precision approach in this field is possible and likely to drive better outcomes for patients, according to Dimitropoulos.