# Novamind Financial Model

Novamind Ventures is building the infrastructure for a regulated psychedelics industry - outpatient clinics, clinical research sites, and international retreat network.

- Canonical: https://finamodel.com/startups/novamind
- Excel download: https://finamodel.com/startup-models/novamind.xlsx
- Category: Health-tech
- Model type: SaaS ARR / Valuation
- Funding round: Seed
- Funding: $10M
- Founded: 2021
- Geography: Corporate HQ Toronto (Canada); clinics and research sites in Utah, USA; retreat investments in Costa Rica and Netherlands [DECK slide 9]
- Customer: B2B

## About the company

Novamind builds regulated psychedelics infrastructure through outpatient clinics, research sites, and international retreats. Its strategy combines direct patient care with research capabilities in a sector where clinical protocols, regulation, and site operations shape both access and economics.

Revenue combines clinic treatments, CRO services, and potentially network or retreat income. Growth depends on licensed locations, clinician and therapist capacity, patient demand, research contracts, regulatory approvals, and the timing required for each site to reach sustainable utilisation.

The model forecasts clinics, treatment sessions, revenue per treatment, clinician cost, research contracts, and site-level ramp. It includes facility investment, compliance, patient acquisition, treatment supplies, working capital, gross margin, operating cash flow, funding needs, and runway.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

Three business units operating under Novamind Ventures:

1. **Cedar Psychiatry** (subsidiary) - full-service outpatient mental health clinics in Utah specializing in ketamine-assisted psychotherapy (KAP), Spravato (esketamine), TMS, and medication management
2. **Cedar Clinical Research (CCR)** (subsidiary) - psychedelic-focused contract research organization (CRO); hosts Phase I–IV clinical trials; led Spravato trials for Janssen; coordinating investigator on MAPS MDMA eating-disorder trial
3. **Retreat network** - minority equity investments with board seats in Synthesis (Netherlands, psilocybin) and Circadia Center (Costa Rica, psychedelic experiences); right of first refusal to acquire Circadia

Value proposition: own the full-stack infrastructure (clinical care + research + international retreats) before psychedelic medicines receive broad regulatory approval, positioning as the pick-and-shovel play in the sector.

## Market

- US annual spend on mental health services: US$224B
- US annual spend on depression and anxiety treatments: US$17B
- No explicit TAM/SAM/SOM breakdown or market-growth CAGR provided in deck
- Clinical efficacy cited as market catalyst: MDMA Phase III for PTSD (67% remission rate); psilocybin Phase IIB for TRD (42% complete remission)

## Revenue model

- **Clinic revenue (Cedar Psychiatry):** fee-for-service per treatment session - ketamine infusions, Spravato sessions, TMS, psychotherapy, medication management; patients pay out-of-pocket or via insurance (insurance coverage not addressed in deck)
- **CRO revenue (Cedar Clinical Research):** clinical trial hosting fees from pharma/biotech sponsors (e.g., Janssen for Spravato trials, MAPS for MDMA trials)
- **Retreat revenue:** indirect - Novamind holds minority equity stakes in Synthesis and Circadia; no direct retreat revenue flows to Novamind parent unless dividends declared or entities acquired
- Pricing per treatment, sponsor fee structures, and revenue-share terms not disclosed in deck

## Traction & metrics

- 2019 revenue: C$1.9M
- Ketamine-assisted psychotherapy: over 3,000 treatments administered
- Spravato therapy: over 1,000 treatments administered
- Clinics in operation (at time of deck): 4 - Springville, Orem, Salt Lake City, Layton (all Utah)
- Clinics in development: 1 (Draper, anticipated Q2 2021)
- Synthesis retreat participants: over 600 since founding (2018)
- No monthly/quarterly revenue run-rate, revenue growth %, or patient volume trend disclosed

## Competition / moat

Comparable companies shown (all valuations as of November 2020):
| Company | Ticker | Valuation (C$) | 2019 Revenue (C$) | Business model |
| -- | -- | -- | -- | -- |
| Novamind | Private | $33M (pre-money) | $1.9M | Clinics + CRO + retreats |
| Field Trip | CSE:FTRP | $178M | NIL | Clinics + drug dev |
| Numinus Wellness | TSXV:NUMI | $49M | $107K | Clinics only |
| Cybin | NEO:CYBN | $137M | NIL | Drug dev + CPG |
| Compass Pathways | NASDAQ:CMPS | $1.24B | NIL | Drug dev |
| MindMed | NEO:MMED | $435M | NIL | Drug dev |
| ATAI | Private | $897M | - | Drug dev |

Moat claims: only competitor with existing revenue and a multi-pillar model (clinics + CRO + retreats); novel EF-KAP protocol (manualized, scalable); scientific advisory board with Yale, Columbia, Toronto, Utah academic affiliations; board seat + ROFR on Circadia acquisition; established CRO relationships with Janssen and MAPS.

## Team & funding ask / use of funds

**Leadership**:
- Yaron Conforti, CEO/Director - investment banking background (Desjardins, Sandfire); principal at Emmcap Corp.
- Reid Robison MD MBA, CMO/Director - co-founded & sold Tute Genomics (VC-backed, US$10M+); led 100+ clinical trials; MAPS coordinating investigator
- Adele Lafrance PhD, Consulting Research Scientist - co-developer of EF-KAP; MAPS clinical investigator
- Seneca Anderson, SVP Operations - co-founded Cedar Psychiatry flagship clinic
- Prakash Gowd MBA BSc Pharm, SVP Corporate Development - 25 years capital markets & biopharma (CIBC, Canaccord, GSK)
- Nolan Ladouceur, VP Business Development - former investment banking analyst

**Board**: Sruli Weinreb (Plaza Capital); Chuck Rifici (founder of Canopy Growth); Jesse Kaplan CFA (Plaza Capital)

**Scientific Advisory Board**: Mirjana Domakonda MD (Yale); Allan Kaplan MD (CAMH/Univ. Toronto); Craig Blinderman MD (Columbia); Paul Thielking MD (Huntsman Cancer/Univ. Utah)

**Funding ask:** C$5,000,000

**Investments made to date:**
- C$1,170,000 lead investment in Synthesis (Netherlands) seed round
- C$100,000 lead investment in Circadia (Costa Rica)

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## Recommended financial model

**Archetype + why:**
Multi-segment operating company P&L with clinic roll-up logic. This is not a pure SaaS, DTC, or drug-development model. The primary revenue driver is clinic throughput (treatments × revenue per treatment), overlaid with CRO fee-for-service income and minority investment mark-to-market. A 3-statement model with a clinic-count expansion module is most appropriate - similar in structure to a healthcare services roll-up. The retreat segment (Synthesis, Circadia) should be modeled as equity investments on the balance sheet, not consolidated revenue, unless acquisition triggers (ROFR) are exercised.

**Forecast horizon & granularity:**
- 5-year annual (2020–2025), with monthly detail for Year 1 given early-stage clinic ramp
- Quarterly milestones for clinic openings

**Key drivers & assumptions:**
- Number of operating clinics; growth rate
- Treatments per clinic per month;
- Revenue per treatment;
- Treatment mix (ketamine / Spravato / TMS / therapy);
- Gross margin per clinic
- CRO revenue;
- Corporate overhead / G&A
- Clinic capex / buildout cost
- CAC / patient acquisition spend

**Scenarios (Base / Bull / Bear - which variables flex):**
- **Base:** 2 new clinics/year; 65 treatments/clinic/month at steady state; revenue/treatment at midpoint; regulatory environment stable
- **Bull:** 3+ new clinics/year (accelerated expansion capital); Spravato insurance coverage expands; psilocybin achieves FDA approval by 2023 unlocking new treatment line; Circadia acquired and consolidated
- **Bear:** Regulatory delays on MDMA/psilocybin dampen new patient interest; clinic ramp slower (45 treatments/month); CRO trial pipeline thins due to sponsor budget cuts (COVID impact)

**Required sheets / outputs:**
1. Assumptions dashboard (all drivers in one place)
2. Clinic roll-up model (clinic count × treatments × revenue/treatment × utilization ramp curve)
3. CRO revenue schedule (by trial, sponsor, phase, fee)
4. Retreat investments (equity stakes, book value, ROFR acquisition scenario toggle)
5. P&L - consolidated and by segment (Cedar Psychiatry / CCR / Corporate)
6. Balance sheet (light - track cash, clinic PP&E, equity investments)
7. Cash flow statement (operating + capex for clinic buildouts)
8. Funding & uses (C$5M raise deployment schedule)
9. Comps benchmarking tab (revenue multiples vs. Field Trip, Numinus)
10. Scenario/sensitivity toggle (clinic count × revenue/treatment)

## Frequently asked questions

### Is the Novamind financial model free?

Yes. The Novamind model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.