San Francisco, CA – Breakout Ventures has announced the closing of its third fund, Fund III, with $114 million in capital commitments. This marks the firm’s largest fund to date, reflecting a growing confidence in the convergence of artificial intelligence and biological innovation. The fund will focus on early-stage companies developing technologies that accelerate scientific discovery and translate it into tangible medical advancements.
Founded in 2011 as an extension of the Thiel Foundation, Breakout Ventures initially operated as Breakout Labs, a grant program designed to support scientist-entrepreneurs pursuing high-risk, high-reward research often overlooked by traditional funding sources. Recognizing the demand for more substantial investment beyond grants, the firm launched its first venture fund in 2017, raising $60 million. According to TechCrunch, a subsequent fund in 2021 secured $112.5 million in commitments.
Investing at the Intersection of AI and Biology
Breakout Ventures’ Fund III is strategically positioned to capitalize on the rapidly evolving landscape where artificial intelligence is transforming biological research. While AI is becoming ubiquitous, the firm differentiates itself by concentrating on applications that directly impact the scientific process, rather than general-purpose AI tools. This includes accelerating drug discovery, improving diagnostics, advancing neurotechnology, and developing novel materials. The firm believes the most significant breakthroughs will arrive from companies that seamlessly integrate computational power with laboratory experimentation.
“The most valuable AI opportunities in biology are not chatbots or administrative tools but systems that can genuinely accelerate how science turns into medicine,” Breakout Ventures states on its website. Breakout Ventures currently manages over $230 million across its three funds, demonstrating a sustained commitment to this emerging field.
Expanding the Team and Portfolio
Alongside the closing of Fund III, Breakout Ventures has expanded its team to bolster its expertise and operational capabilities. Managing Partners Lindy Fishburne and Julia Moore remain at the helm, guiding the firm’s investment strategy. New additions include Dana Watt, a founder with experience in diagnostics, and Nima Ronaghi, an organic chemist focused on supporting scientists transitioning into entrepreneurial roles. The operational team has similarly been strengthened with the addition of CFO James Chan, General Counsel Ziv Yoash, and Director of Platform Susanna Harris.
The firm’s existing portfolio provides a glimpse into its investment philosophy. Noetik, a recent investment, is leveraging AI and machine learning to discover cancer immunotherapies by analyzing spatial multimodal data from human tumors. As reported by Fierce Biotech, Noetik raised a $40 million Series A round in 2024, led by Polaris Partners with participation from Khosla Ventures. Phantom Neuro, another portfolio company, is utilizing neural signal processing to enhance control for prosthetic limb users, securing a $19 million Series A in 2025 with Ottobock as the lead investor. ZymoChem, focused on bio-based chemical manufacturing, raised $21 million in a Series A round led by Breakout Ventures in 2024. Surf Bio, a previous portfolio company, was acquired by Halozyme in 2025 for $400 million, demonstrating the firm’s ability to identify and support companies through successful exits.
A Founder-First Approach
A consistent theme across Breakout Ventures’ investments is a focus on founder profiles. The firm prioritizes scientists who possess an engineering mindset, a rapid prototyping approach, and a commitment to building companies where the underlying science creates a sustainable competitive advantage. This approach has been a cornerstone of Lindy Fishburne’s strategy for over fifteen years.
The timing of this investment strategy appears increasingly prescient. The potential of AI to revolutionize biology has gained widespread recognition since 2022, with advancements like AlphaFold significantly impacting protein structure prediction. Foundation models are now being applied to genomics, proteomics, and spatial omics data, enabling a new generation of companies – many within Breakout’s portfolio – to operate at the forefront of scientific innovation with tools unavailable just a decade ago. These tools are accelerating timelines and reshaping the industry.
Fund Deployment and Investment Focus
Fund III will continue Breakout Ventures’ established pattern of providing initial institutional funding to science-driven companies, typically at the pre-seed and Series A stages, and then participating in subsequent funding rounds as these companies scale. The firm’s investment sectors remain consistent with previous funds, encompassing biotech and life sciences, healthcare and digital health, robotics and automation, and the development of essential computational tools and infrastructure.
For a firm that originated as a grant program supporting unconventional ideas, the $114 million raised for Fund III represents a significant validation of its investment thesis. The scientific concepts that Breakout Ventures backed in its early years, once considered radical, are now increasingly viewed as inevitable advancements.
The firm’s success underscores the growing recognition of the transformative potential of AI in accelerating scientific discovery and translating it into real-world solutions. Breakout Ventures is well-positioned to continue supporting the next generation of scientist-entrepreneurs who are driving this innovation.
Breakout Ventures will continue to monitor the progress of its portfolio companies and seek new investment opportunities at the intersection of AI and biology. The next key milestone for the firm will be the deployment of capital from Fund III into promising early-stage ventures. Readers interested in learning more about Breakout Ventures and its portfolio can visit the firm’s website at https://breakout.vc/.
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