Breakout Ventures Launches $112.5M Fund with Backing from Tony Fadell & Chris Sacca
Breakout Ventures Secures $112.5 Million for Creative Biosciences Investments
Breakout Ventures, a San Francisco-based venture firm specializing in seed- and Series A-stage funding for creative biosciences startups, has successfully completed its second fundraise, securing $112.5 million in capital commitments.
Fund Backing and History
Both of the firm’s funds, including a prior $60 million debut fund established in 2017, benefit from backing by prominent investors such as Dolby Family Ventures, the Thiel Foundation, GRIDS Capital, S Cubed Capital, Chris and Crystal Sacca, Tony Fadell, Zack Bogue, and Matt Ocko of DCVC.
The latest fund has also attracted new institutional limited partners, notably Cortes Capital and Cupola Funds, managed by AMG National Trust.
Focus on Biology and Technology Convergence
The investment decisions of these high-profile backers are rooted in the expertise of Breakout Ventures’ two managing partners, who have consistently focused on ventures operating at the intersection of biology and technology.
Lindy Fishburne transitioned to venture capital after a decade as the executive director of the Thiel Foundation, where she oversaw grants to deep science startups. She recognized the need to directly invest as she observed promising advancements.
Julia Moore previously served as an associate director at Stanford University and later as a portfolio director at the Thiel Foundation, subsequently joining Fishburne at Breakout Ventures. She was promoted to managing partner earlier this year, coinciding with the phasing out of the Thiel Foundation’s original grant model.
Portfolio Performance and Fundraising Success
The firm’s investment strategy and portfolio performance were central to the fundraising process, demonstrating significant progress with a collection of highly valued startups.
Modern Meadow, a company pioneering lab-grown leather, is among these successes, having secured $130 million in Series C funding in April. Breakout Ventures was also an early investor in Cytovale, a San Francisco-based firm developing a rapid sepsis test – generating results in under 10 minutes – and has raised $50 million to date.
Furthermore, Checkerspot, utilizing synthetic biology to create novel bio-derived oils, has also raised a total of $50 million, including investment from Viking Global Investors.
Navigating Challenges and Opportunities
Breakout Ventures also made an early investment in Cortexyme, a publicly traded company focused on Alzheimer’s therapies, which experienced a setback in October impacting its stock performance.
Collectively, the portfolio companies have attracted over $1 billion in subsequent funding and grants. The investors anticipate an acceleration of this trend, particularly influenced by the recent pandemic.
The Impact of the Coronavirus Pandemic
The development of COVID-19 vaccines has had a substantial and lasting impact, according to both investors.
“The world witnessing the central role of science and its ability to respond rapidly, driven by available tools, has created an enormous opportunity for our companies,” states Fishburne.
She highlights Phylagen, a portfolio company employing microbial genomics and data analytics for pandemic management and supply chain verification, currently collaborating with major tech firms to ensure workplace safety.
Accelerated Innovation in Biosciences
Moore adds that the speed with which companies like Moderna developed vaccines has fundamentally altered the pace of innovation in the biosciences.
“Companies are now monitoring timelines more quickly, possessing more actionable information and iterating at an unprecedented rate,” she explains.
Recent Investments and Future Outlook
Breakout Ventures has already deployed capital from its new fund into three companies, including Parthenon Therapeutics, a Cambridge, Massachusetts-based biotech developing anti-cancer therapies, which recently raised $65 million in Series A funding.
Moore emphasizes that while Parthenon appears as a traditional therapeutics company, it is distinguished by its innovative biomarker work, novel hypotheses, and interdisciplinary team.
Breakout Ventures is exploring unconventional partnerships for Parthenon, focusing on accelerating pipeline development through pathology and artificial intelligence.
Image: The Breakout Ventures team, featuring Moore and Fishburne (top, left to right).