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Xylo Bio develops next-generation neurotherapeutics to rewire neural circuits and restore brain function. Integrating advanced neuroscience with computational drug discovery, the company creates optimized treatments. Their core strategy enhances neuroplasticity, the brain's natural ability to reorganize, directly addressing various neurological and psychiatric conditions.
Originally Psylo, the company rebranded as Xylo in early 2024, sharpening its focus on innovative brain health solutions. This transformation arose from understanding profound unmet needs in neurological and psychiatric care. The venture was founded on the insight that harnessing the brain’s inherent plasticity offers a path to more effective, targeted therapies.
Xylo Bio serves global patients affected by neurological and psychiatric disorders, aiming to improve therapeutic outcomes. The company's vision is to deliver breakthrough precision neurotherapeutics, addressing critical gaps in current care. They are committed to transforming lives by advancing possibilities in neurological recovery and mental well-being worldwide.
Xylo Bio has raised $8.0M across 1 funding round.
Xylo Bio has raised $8.0M in total across 1 funding round.
Xylo Bio has raised $8.0M in total across 1 funding round.
Xylo Bio's investors include M8 Ventures.
Xylo Bio has raised $8.0M across 1 funding round. Most recently, it raised $8.0M Seed in June 2024.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Jun 1, 2024 | $8M Seed | — | M8 Ventures | Announced |
Xylo Bio is a biotechnology company developing neuroplastogen therapies—targeted small molecule drugs that enhance neuroplasticity to rewire neural circuits and restore brain function for patients with psychiatric and neurological disorders.[1][2][3] Formerly known as Psylo, it leverages advanced neuroscience and computational drug discovery to create non-hallucinogenic alternatives to traditional treatments like SSRIs, with a pipeline including lead candidate XYL-1001 for neurological conditions and others like PSYLO-3001 for depression and psychotic disorders, all in preclinical stages.[1][5] The company serves patients worldwide facing unmet needs in brain health, addressing root causes rather than symptoms, and is scaling manufacturing for first-in-human trials of XYL-1001 in mid-2026.[1]
Founded in 2021 and based in Sydney, Australia, Xylo Bio rebranded in 2025 to emphasize its focus on precision neurotherapeutics, employing 11-50 people with expertise in neuroscience, medicinal chemistry, and drug development.[1][2][3]
Xylo Bio originated as Psylo in 2021 in Sydney, New South Wales, initially focusing on psychedelics for neurological and psychiatric conditions before evolving into neuroplastogens.[1][3] The rebrand to Xylo Bio in January 2025 marked a pivotal shift, reflecting sharpened emphasis on computationally designed small molecules that promote neural remodeling without hallucinatory effects, alongside key board appointments and pipeline progress.[1][3] Early traction included building a pipeline of 5-HT2A receptor agonists targeting depression, anxiety, psychotic disorders, and nervous system diseases, all at preclinical stages.[5] The idea emerged from combining neuroscience insights on neuroplasticity—the brain's ability to form new connections—with computational tools to optimize therapies.[3]
Xylo Bio rides the neuroplasticity revolution in biotech, capitalizing on growing evidence that enhancing the brain's rewiring capacity can transform treatments for mental health crises like depression and anxiety, where SSRIs often fall short.[1][3] Timing aligns with regulatory shifts toward psychedelic-inspired therapies and AI-driven drug discovery, amplified by post-2020 mental health demands and advances in computational biology.[1][2] Market forces favoring it include surging investment in non-hallucinogenic psychedelics—projected to disrupt a $20B+ neuropsychiatric market—and partnerships highlighted at events like JPM Healthcare.[1] It influences the ecosystem by validating neuroplastogens as a new therapeutic class, potentially accelerating preclinical-to-clinical transitions for similar startups.[3][5]
Mid-2026 first-in-human trials for XYL-1001 position Xylo Bio for rapid milestones, with pipeline expansion into depression and psychosis likely drawing partnerships amid rising demand for precision brain therapies.[1][5] Trends like AI-optimized drug design and neuroplasticity-focused investing will propel growth, evolving its role from pioneer to leader in rewiring neuropsychiatric care. As computational platforms mature, Xylo could redefine alternatives to outdated standards, delivering the targeted neurotherapeutics that transform lives as promised in its reimagined mission.[1][2][3]
