VC Lindy Fishburne on the Democratization of Science

The Shifting Landscape of Deep Science Investment

Lindy Fishburne, a prominent investor in deep science ventures, is a co-founder of Breakout Ventures. She initially established Breakout Labs within the Thiel Foundation in 2011, and has since cultivated a diverse portfolio of investments.

Her firm’s holdings include Cortexyme, focused on Alzheimer’s disease treatment; Modern Meadow, a developer of sustainable materials; and Strateos, a company revolutionizing laboratory work through its robotic cloud platform.

Navigating the Pandemic's Arc

A recent discussion with Fishburne explored the current stage of the pandemic and the evolving prospects of her investments. The conversation, lightly edited for brevity and clarity, revealed key insights into the changing dynamics of the scientific investment world.

TC: What is your assessment of the progress in American vaccinations?

LF: The speed of vaccine development is unprecedented in scientific history. The primary challenge now lies in the logistical complexities of widespread distribution. Subsequently, we must address global vaccine equity and its impact on travel, exposure risks, and overall public perception.

Increased Investor Interest in Science

TC: Has the pandemic spurred greater interest from investors in scientific ventures?

LF: Absolutely. The pandemic has underscored the critical importance of investing in science. We are witnessing a new wave of interest from traditional tech investors, inspired by the rapid development of mRNA vaccines like Moderna’s. This is fostering a belief in our ability to engineer biology, moving beyond traditional, craft-based approaches.

The Evolving Role of Laboratories

TC: Are laboratories becoming less central as simulation technologies advance, and what implications does this have for human testing?

LF: While we aspire to reduce reliance on human testing, we are not yet at that point. Innovations like organs-on-chips and organoids allow for toxicity testing on small tissue samples, and we are expanding their use. However, the human body’s complexity still necessitates thorough human trials to ensure safety and efficacy.

The trend does point towards a democratization of science, enabling more individuals with varying skill levels to participate in drug discovery and development remotely. For instance, Strateos offers a fully robotic lab where experiments can be conducted remotely, allowing scientists to continue their work regardless of location or safety concerns.

Transforming Carbon Dioxide Emissions

TC: Could you elaborate on Opus 12, a portfolio company converting industrial carbon dioxide into chemicals?

LF: Decarbonizing the world is a paramount objective. Companies like United Airlines are now setting ambitious carbon footprint reduction goals. Opus 12, originating from Stanford University, has developed a catalyst material that transforms waste CO2 into valuable carbon monoxide.

This year, they partnered with Daimler to produce green polycarbonate car parts, utilizing the same material properties as conventional parts but created through carbon reuse. Growing consumer awareness regarding carbon-conscious materials presents a significant market opportunity.

Carbon Credits and Sustainable Practices

TC: Do companies benefit from carbon credits when adopting these practices?

LF: Yes, but the focus is shifting. Previously, many companies relied on buying and trading carbon credits. Now, there’s a demand for tangible changes in business practices, reducing direct fossil fuel consumption and carbon impact. Simply offsetting carbon emissions is no longer considered sufficient.

We are seeing increased commitments to transform processes, supply chains, and ultimately, products.

The Rise of SPACs and Biotech IPOs

TC: Biotech companies are going public earlier than in the past, and SPACs are accelerating this trend. Are there parallels to be drawn?

LF: In the therapeutic space, there’s a well-defined path to exit, with established pharmaceutical companies seeking to acquire promising assets. The availability of comparable companies allows for informed investment decisions. Diversifying bets on early-stage therapeutics mitigates risk, as a single success can yield substantial returns.

The SPAC market is more uncertain, as many companies lack traditional playbooks and their long-term viability as public entities is unclear. Their potential for acquisition remains to be seen.

Furthermore, these companies will operate under increased scrutiny, requiring a different evaluation framework than traditional public companies. The public markets may not readily accept metrics focused on growth rather than revenue and profits. The next 24 months will be crucial in determining whether a correction occurs.

For a more in-depth discussion, you can access the full conversation with Fishburne here.

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