AlleyCorp's $335 Million Fund: Kevin Ryan's Psychedelics and AI Betting Extends

Kevin Ryan, known as 'The Godfather of NYC Tech' and founder of AlleyCorp, has raised a $335 million second fund after welcoming outside investors for the first time in 2024 with a $250 million fund. AlleyCorp, which invests in healthcare, deep tech, and general tech, reported a 60% IRR from previous investments. Ryan noted that 2026 saw $412.7 billion deployed into just a few companies during the AI boom. 'VC money is down because so much has gone into SpaceX, Anthropic, and OpenAI,' he said. AlleyCorp's Nolita office has transformed into a hub for companies like Benchstrength and a new restaurant. Ryan, who cofounded Transcend Therapeutics sold for $1.2 billion, said, 'We bet on psychedelics because we think about where the world is going in 5-10 years.' He also remarked, 'In 2017, 50% of cars were expected to be driverless by 2026, but we're at 0% now.' The AI acceleration has made the world change faster than even a 12-month-old book could predict, he added.

Markets may see VC funds shifting focus as Ryan's bets on psychedelics and AI redefine future investment strategies.