Breakout Ventures Raises $114M to Drive AI and Biology Innovations

Early-stage venture firm Breakout Ventures has successfully closed its third fund, raising a substantial $114 million to invest in innovative technologies rooted in scientific research. This funding comes as part of a broader effort by venture investors to capitalize on breakthroughs in science and deep technology, particularly in fields such as biology, chemistry, and artificial intelligence.

The San Francisco-based firm announced that Fund III will prioritize early-stage companies that are leveraging scientific advancements to create commercial products. The fund has garnered support from a mix of returning and new investors, including notable names such as Cortes Capital, S-Cubed Capital, and The Kraft Group. New contributions also arrived from JIMCO and the Korea Omega Investment Corporation.

Focus on Scientific Innovation

In conjunction with the new fund’s launch, Breakout Ventures has promoted Nima Ronaghi to partner. This promotion highlights Ronaghi’s significant contributions to the firm’s investment strategies and support for portfolio companies. Lindy Fishburne, Managing Partner at Breakout Ventures, expressed enthusiasm about the fund’s potential, stating, “We’ve spent the last decade investing early in founding teams using technology to harness the power of science to architect the future.”

Fishburne emphasized the transformative impact of artificial intelligence on biology and chemistry, noting that the sector is witnessing unprecedented speed and efficiency in cost management and profitability. The firm aims to build on its history of supporting scientific founders through rigorous partnerships as they navigate the path to commercialization.

Breakout Ventures has made a name for itself by investing in science-driven startups. Its previous fund, launched in 2021, has yielded successful outcomes, including a recent acquisition of Surf Bio by Halozyme Therapeutics for up to $400 million, providing a significant return for investors.

Investments from Fund III

With Fund III now operational, Breakout Ventures has begun deploying capital into promising startups. Among its first investments is Reach Industries, which is developing computer vision systems tailored for regulated industries. The firm has also backed two additional startups currently in stealth mode, one focused on enhancing the commercialization of scientific discoveries and another dedicated to computational tools for small-molecule discovery.

Other notable portfolio companies include Cytovale, which has created an AI-enabled diagnostic test for sepsis, and Twelve, recognized for producing aviation fuel from captured carbon. The firm also supports Noetik, which is working on AI models for analyzing cancer data, Phantom Neuro, which is developing systems for controlling prosthetic limbs, and ZymoChem, focused on alternatives to petrochemical materials.

As Breakout Ventures embarks on this new funding journey, its commitment to fostering innovation in science and technology remains clear, positioning it at the forefront of a rapidly evolving industry landscape.