Tesi (Finnish Industry Investment) and existing investor Innovestor Life Science Fund also participated significantly in the round. New investors include the Finnish Drug Discovery Center and Stephen Industries, alongside existing seed investors Nordic Science Investments and Helsinki University Funds.

The Finnish biotech is developing small-molecule positive allosteric modulators (PAMs) of TrkB (tropomyosin receptor kinase B), a key regulator of neuroplasticity. The aim is to reproduce the rapid and long-lasting antidepressant effects of psychedelics without engaging 5-HT2A, the serotonin receptor responsible for their hallucinogenic effects. The approach builds on research by Professor Eero Castrén at the University of Helsinki, who showed that psychedelics such as LSD and psilocybin bind directly to TrkB.

In preclinical studies, lead candidate KTX-0141 has shown enhanced TrkB signaling, robust structural and functional neuroplasticity, favorable drug-like properties, and an encouraging safety profile. No hallucinogenic activity was observed in the industry-standard preclinical model.

The new funds will take KTX-0141 through IND/CTA-enabling studies and Phase 1/1b clinical development in major depressive disorder. Clinical development is expected to begin in the second half of 2027 and will include an initial efficacy assessment in patients, with a control arm.

“In just three years, we have advanced from a bold scientific hypothesis to a highly selective, first-in-class TrkB potentiator backed by compelling preclinical evidence,” says Jami Mandelin, CEO and co-founder of Kasvu Therapeutics. “KTX-0141 has the potential to be a rapid-acting and long-lasting treatment with convenient at-home use, helping people living with these conditions to regain healthier, fuller lives.”

“Clinical data with psychedelics and other rapid-acting approaches has shown that engaging neuroplasticity can deliver rapid and durable benefit where decades of monoamine-based drugs have fallen short,” says Georgina Askeland, Principal at Hadean Ventures, who joins Kasvu’s board. “The logical next step is bringing that biology to the millions of patients who cannot access a supervised, in-clinic experience.”