As venture investors continue to seek breakthroughs in science and deep technology, early-stage venture firm Breakout Ventures has announced the close of its third fund, totalling $114 million.
The San Francisco-based firm said the new vehicle, Fund III, will focus on early-stage companies developing technologies rooted in scientific research, particularly in areas such as biology, chemistry and artificial intelligence.
The fund received backing from returning investors, including Cortes Capital, S-Cubed Capital, The Kraft Group, Pinegrove Venture Partners and an affiliate of LH Capital. New investors include JIMCO and Korea Omega Investment Corporation.
Alongside the new fund, Breakout Ventures also promoted Nima Ronaghi to partner, reflecting his role in supporting the firm’s investments and portfolio companies.
With the launch of this new fund, Managing Partner Lindy Fishburne said, “We’ve spent the last decade investing early in founding teams using technology to harness the power of science to architect the future. As AI is unleashed on the scale of data in biology and chemistry, we are experiencing incredible speed, momentum, and efficiency that are fundamentally changing cost curves and return profiles. This new fund will build on our track record of supporting scientific founders through rigorous partnership as they navigate the complexities of moving towards commercialisation.”
Investing in science-driven startups
Breakout Ventures focuses on early investments in startups that turn scientific research into commercial products. It launched its second fund in 2021.
One of its portfolio companies, Surf Bio, was recently acquired by Halozyme Therapeutics for up to $400 million, delivering a return for the venture firm.
Other portfolio companies include Cytovale, which developed an AI-enabled diagnostic test for sepsis used in emergency departments, and Twelve, which produces aviation fuel from captured carbon.
Additional companies in the portfolio include Noetik, which is developing AI models to analyze cancer data, Phantom Neuro, which is building systems to control prosthetic limbs, and ZymoChem, which is developing alternatives to petrochemical-based materials.
First investments from the new fund
Breakout Ventures said it has already started deploying capital from Fund III. Early investments include Reach Industries, which is developing computer vision systems designed for regulated industries.
The firm has also backed two additional startups that remain in stealth mode. One focuses on improving the commercialisation of scientific discoveries, while the other is working on computational tools for small-molecule discovery.
