Breakout Ventures Secures $114M Fund to Boost AI-Driven Science

Early-stage venture firm Breakout Ventures has successfully closed its third fund, raising a total of $114 million. This new fund aims to invest in startups harnessing scientific breakthroughs, particularly in the fields of biology, chemistry, and artificial intelligence. The San Francisco-based firm’s initiative comes amidst a growing demand for innovative solutions in deep technology.

The fund, known as Fund III, has attracted support from several returning investors, including Cortes Capital, S-Cubed Capital, The Kraft Group, Pinegrove Venture Partners, and an affiliate of LH Capital. New contributions have also come from JIMCO and Korea Omega Investment Corporation.

Strategic Focus and Leadership Changes

In conjunction with the 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 portfolio management. Commenting on the new fund, Managing Partner Lindy Fishburne expressed enthusiasm for the potential that lies ahead.

“We’ve spent the last decade investing early in founding teams using technology to harness the power of science to architect the future,” Fishburne stated. “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.”

Breakout Ventures is known for its early investments in companies transforming scientific research into market-ready products. The firm previously launched its second fund in 2021. A notable success from its portfolio, Surf Bio, was acquired by Halozyme Therapeutics for up to $400 million, marking a significant return for the venture capital firm.

Portfolio Highlights and Future Investments

Among Breakout’s other portfolio companies is Cytovale, which has developed an AI-enabled diagnostic test for sepsis that is currently in use in emergency departments. Additionally, Twelve is innovating in the renewable energy space by producing aviation fuel from captured carbon.

Other promising ventures include Noetik, focused on AI models for cancer data analysis; Phantom Neuro, which is creating systems to control prosthetic limbs; and ZymoChem, developing sustainable alternatives to petrochemical-based materials.

Breakout Ventures has already begun deploying capital from Fund III, initiating early investments such as in Reach Industries, which specializes in computer vision systems tailored for regulated industries. The firm is also supporting two startups in stealth mode—one aimed at enhancing the commercialisation of scientific discoveries and the other focused on computational tools for small-molecule discovery.

As Breakout Ventures embarks on this new chapter, its commitment to fostering innovation in science and technology remains unwavering, positioning itself at the forefront of the intersection between deep technology and scientific advancement.