Breakout Ventures closes $114M fund for AI-science startups

Breakout Ventures has officially closed its third investment fund, Fund III, securing $114 million in capital. The firm intends to use this capital to back AI-focused, early-stage startups that are working in scientific fields such as biology and chemistry. Lindy Fishburne, the managing director of Breakout Ventures, explained that the firm is looking for companies focused on using artificial intelligence to resolve complex scientific challenges.

To deploy this new capital, the firm has already written checks to three companies. Over the course of Fund III’s investment cycle, Breakout Ventures plans to invest in at least 20 companies. The check sizes for these investments are expected to range from $500,000 to $5 million per company.

The firm’s history of science-focused investing dates back to its official launch in 2016. Breakout Ventures originally spun out of a grant program from the Thiel Foundation, which is a nonprofit organization. Since its launch, the firm has raised two previous funds:

• Fund 1: $60 million raised in 2017
• Fund II: $112.5 million raised in 2021

Fishburne emphasized that the firm’s core mission has remained steady since its inception, noting that they have consistently focused on using technology to leverage biology and chemistry to address major unsolved needs and establish new markets.

Securing the capital for Fund III was a multi-month effort. Fishburne stated that it took around a year and a half to raise Fund III. The capital was raised from investors in a venture capital fund, with participants including The Kraft Group, Pinegrove Venture Partners, and S-Cubed Capital.

When selecting startups for investment, Breakout Ventures focuses heavily on the background and expertise of the entrepreneurs. Fishburne noted that founders might be PhDs who developed the very science they are commercializing, or they might come from the industry with a deep understanding of market needs and opportunities. In either case, the firm prioritizes alignment. As Fishburne, the managing director of Breakout Ventures, stated, “Either way, we look for fit — the obvious reason why this is the best person to build a specific company.”

Why it matters

The firm’s continued focus on the intersection of AI and hard science highlights the growing investor appetite for startups that can bridge the gap between complex biological research and commercial application.