AlleyCorp in Q1: Transcend’s Progress in Psychiatric Medicine
AlleyCorp portfolio companies raised nearly half a billion dollars in funding this quarter, but the most significant development was the compelling trial results of our incubation company, Transcend.
Psychiatric therapies continue to be a widely discussed subject in mental health. Last summer, the FDA made headlines for its rejection of an MDMA-assisted therapy, which emphasized the need for more rigorous testing.
This past week, Transcend Therapeutics, a biotech company that we incubated at AlleyCorp in 2021, shared positive results from its most significant clinical trial to-date. The study evaluated TSND-201 (methylone), marking the first time a compound of its kind demonstrated rapid efficacy for patients in-trial suffering from PTSD.
Participants in the trial had endured PTSD symptoms for an average of 20 years, all previously trying other treatments. Remarkably, by Day 10 of Transcend's trial, there was already statistically significant improvement compared to placebo - which continued from Day 10 through Day 64.
It's an incredible breakthrough, and one that will open the door for Transcend to initiate a final Phase 3 program with the FDA, paving the way toward submitting a new drug application.
While there is still much ahead for the company, these are encouraging steps that can transform the landscape of mental health and the broader psychiatric therapy field.
New Investments in Q1
AlleyCorp participated in Valar Atomics’ $19M seed round led by Riot Ventures with additional investors including Initialized Capital, Steel Atlas, Day One Ventures, Stifel Bank, and others.
Earlier this month, Valar also unveiled its Ward Zero Thermal Test Reactor, a first reactor prototype that will allow the company to collect real data on the future production of low-cost, carbon neutral synthetic fuels.
We're excited to have led Portal Space Systems' $17.5M seed round, with participation from Mach33 Financial Group, FUSE, First In, TFX Capital, Offline Ventures, and Atypical Ventures.
Through their Supernova spacecraft, Portal is introducing a new paradigm in space operations, improving maneuverability in space by over an order of magnitude.
With hundreds of founders submitting applications to our $1M PEERLESS pitch competition, AlleyCorp is honored to congratulate Juan Manuel Barrero, founder of Lazo, as our 2025 winner!
As an all-in-one tech platform for founders, helping them manage their bookkeeping, tax, finance, legal, and fundraising in an intuitive and cost-effective way, Juan has proven he and his team understand the founder journey and road to success better than anyone.
Portfolio Fundraises in Q1
ShopMy announced its $77.5M Series B co-led by Bessemer Venture Partners and Bain Capital Ventures with participation from AlleyCorp, Menlo Ventures, Inspired Capital, and YouTube star Camila Coelho, as well as influencers Jett and Campbell “Pookie” Puckett.
Working with more than 550 brands and more than 100k creators, ShopMy will use the investment to expand into advertising categories in wellness, maternity, family, and food & beverage.
Viam announced its $30M Series C led by USV along with participation from Battery Ventures, the Italian investment group Neurone, and others. This new round will enable Viam to build its presence throughout the European market, where there is ample opportunity to help companies with industrial automation.
Aescape announced an $83M funding round led by Valor Equity Partners with participation from Alumni Ventures, and other existing investors, as well as new investor, NBA All-Star Kevin Love.
With installations now set for 60+ Equinox locations, and future partnerships with Four Seasons Hotels and Resorts and Marriott International, Aescape is focused on continuing its geographic expansion and entering new markets including physical therapy, medical applications, and professional sports.
Ualá closed of an additional $66M on top of their previously announced $300M Series E. The second close included participation from Mexican media corporation TelevisaUnivision, a key strategic partner in Ualá's growing presence in Mexico.
EnCharge AI raised a $100M Series B led by Tiger Global with backing from AlleyCorp, Maverick Silicon, Capital TEN (Taiwan), Vanderbilt University, along with RTX Ventures and other returning investors.
The funding will advance the commercialization of EnCharge’s first computing-focused AI products, which require 20x less energy to run AI workloads than the leading AI chips available today.
Vori Health announced its $53M Series B led by NEA with continued support from AlleyCorp, Intermountain Ventures, Echo Health Ventures, and Max Ventures. The funding will be used to enhance its AI-powered technology platform, as well as invest in advanced data analytics for more precise targeting of high-risk members.
Recent & Upcoming Initiatives
Digital Health New York released its annual list of the most innovative healthcare companies in New York, which included more than 10 AlleyCorp portfolio companies!
Congratulations to Avo, Clarium, Auxa Health, Chamber, Conduce Health, Pearl Health, Siftwell, Thyme Care, Elion, XO Health Inc., Diana Health, Vori Health, and Yuvo Health, along with all of this year's honorees.
Dates for Year 2 of our longevity-focused conference, DOC: Truth in Medicine, have officially been announced with the summit taking place October 12-14, 2025 in Napa Valley.
For more details on registration, please visit our website here.
Team Expansion
We're excited to welcome Nour Obeidallah to the AlleyCorp team as our new Community and Events Manager!
Nour will play a key role in expanding AlleyCorp's events and community initiatives, especially as we look toward the opening of our new HQ later this year. As a seasoned community builder in New York tech, Nour has built a portfolio of work producing some of the city's largest gatherings for the startup and venture ecosystem.
AlleyCorp in the News
"Stablecoins are an absolute sea change and the first actual game-changing application of crypto."
Luc Ryan-Schreiber’s commentary on stablecoins was featured in Axios’ timely piece on crypto, highlighting the future of fintech and where key investment opportunities could exist.
“When you’re on the front line [of the healthcare system] you see all the problems, but don’t really have the agency or time to go fix them.”
General Partner Alexi Nazem joined Yale School of Medicine's Health & Veritas Podcast to discuss AI innovation in healthcare, doctorpreneurship in medicine, and the legacy of his mentor, Don Berwick.
Earlier in the quarter, Alexi also spoke at Cornell Tech's annual HealthNext Summit to highlight the transformative potential of AI in healthcare and the many ways Doctorpreneurs can be thinking about solutions across health tech.
“Companies need hard ROI. But sometimes, automation isn’t about cost savings—it’s about labor shortages and operational resilience.”
General Partner Abe Murray joined the Manifest: Future of Supply Chain & Logistics conference to lead a discussion on Robotics and Tech working in unison, sharing perspectives on inventory drones, automation in manufacturing, human interactive AMRs, and much more.
“You’re seeing the emergence of a true economy off of these platforms and the creators on them."
General Partner Marshall Porter was featured in an Adweek story highlighting the influx of investments in the creator economy, with the piece prominently featuring AlleyCorp portfolio companies ShopMy and Agentio.
In February, Marshall also joined Barte’s co-founder and CEO Caetano Lacerda, at NYU’s Stern School of Business for their Fintech and the Future Conference, unpacking why Brazil and other LatAm markets are welcoming fintech innovation, from both a consumer and B2B perspective.
“Companies are no longer just experimenting with AI — it’s the foundation of modern healthcare.” - Jane Suh
Healthcare principals Omar Njie and Jane Suh took centerstage at ViVE’s annual healthcare conference and DHNY’s Healthcare Investment Trends, respectively. Each covered important topics driving digital health with notable representatives from Abridge, JP Morgan and General Atlantic joining those conversations.
Jane will also be speaking at MedCity News’ INVEST conference in Chicago this May.
“"While the initiative is grounded in diversity, it's fundamentally about backing exceptional founders who have been systematically overlooked by traditional venture capital.”
In a critical moment for DEI, Forbes highlighted our PEERLESS pitch competition with this in-depth article featuring commentary from Desiree Almodovar.
Portfolio Companies in the News
Jozu launched in April, centered by their appearance at KubeCon in London.
Rogo was highlighted in a Bloomberg piece analyzing Wall Street’s use of AI and recognizing the work they are doing with 15 banks, including Lazard and Moelis & Co.
Rebecca Hu-Thrams from Glacier and Tiffany Lopinsky from ShopMy were both featured on Inc.’s list of the Top Female Founders for 2025. Rebecca also recently spoke on an AI and climate panel at SXSW.
Nosis Bio announced it will begin partnering with Daiichi Sankyo and Johnson & Johnson to help advance the development of RNA therapeutics.
Psychedelic Alpha profiled Sunstone Therapies founders Manish Agrawal and Kim Roddy.
Carmoola was named one of the Top 100 Fastest Growing Startups in the UK and Ireland by Sifted.
Tough Leaf CEO Wissam Akra was honored by Columbia University as their alumni innovator of the year.
CauseArtist highlighted AlleyCorp’s work with Mobile Pathways as part of our Nonprofit ENG(INE) initiative, outlining the AI tools we’ve been developing to empower immigration attorneys.
368 Broome Street
A reminder that we will have half-floor and full-floor leases available at our new office building in downtown New York (368 Broome Street), set to open in Fall of this year. If you or your company are interested in workspace options, please reply to this email and a member of our team will be in touch.