Good day. Breakout Ventures launched in 2016 to finance startups operating at the intersection of science and technology, taking the view that developments such as growing computational power would propel innovations in sectors such as biotechnology, medical technology and materials.

The firm, for example, in 2022 co-led a $16 million seed financing in Surf Bio, a startup whose technology enables drugs given by intravenous infusion to be administered through shots at home instead of medical centers. In December, biotech company Halozyme Therapeutics acquired Surf for $300 million, plus $100 million in success-based payments.

Now San Francisco-based Breakout has closed its third fund at $114 million, slightly larger than than its prior vehicle, and within the $100 million to $125 million range it had targeted. We spoke with co-founders and Managing Partners Lindy Fishburne and Julia Moore about their new fund and investment strategy. Here are excerpts from the conversation, edited for length and clarity.

WSJ Pro: How has the opportunity you set out to target when you founded Breakout evolved over the last decade?

Fishburne: The biggest change is predictability. When science acts more like technology, it becomes more investable. The historical view of life sciences was that it was a lottery ticket that takes billions of dollars and years to play out. It is actually becoming more predictable, and that drives a more investable space where you are rewarded for taking that early risk.

WSJ Pro: What contributed to the success of Surf Bio?

Fishburne: They’re fundamentally unlocking the ability to deliver biologics to patients in a radically cheaper, more-effective way. You’re moving from sitting in a clinic for multiple hours with an IV to a subcutaneous injection that can happen at home. Rather than a single-asset bet, we were looking at broad enabling technology, and that is exactly what Halozyme saw.

WSJ Pro: This has been a difficult fundraising market for venture capitalists. How would you describe your fundraising experience?

Moore: We’ve been doing one thing well and consistently. Being early-stage specialists focused on real ventures really resonated, especially in a year where there was noise.

And now on to the news...

New venture fund. Raisewell Ventures, which invests in healthcare, climate tech and other sectors, has closed a $50 million debut fund with a goal of bridging startups in the U.S. and Southeast Asia.

• Raisewell founder Jeep Kline grew up in Bangkok and started Berkeley, Calif.-based Raisewell in 2024 to invest in the U.S. and Southeast Asia. Raisewell, which Kline runs as a solo general partner, aims to help portfolio companies in each territory do business in the other.
   
• Kline reached her target for Raisewell’s fund, which closed in late January. Her investments so far include U.S. companies Andromeda Surgical, which is building an intelligence layer for surgery, and biotechnology company Fauna Bio.
   
• Geopolitical concerns complicate U.S. startups’ efforts to do business in China. Southeast Asia, by contrast, is geopolitically neutral, Kline said. It is open to foreign investment and operating costs are lower than in the U.S., Kline said.

CVS Health’s Aetna unit agreed to pay $117.7 million to resolve allegations that it violated the False Claims Act. The Justice Department said the settlement stems from allegations that claim Aetna submitted false patient diagnosis data for its Medicare Advantage Plan enrollees in order to get higher monthly payments from the Centers for Medicare and Medicaid Services. Under the Medicare Advantage program, beneficiaries can choose to opt out of traditional Medicare and enroll in private plans offered by health insurers like Aetna. 

Mind Robotics, a startup founded by the chief executive of Rivian, has raised $500 million, the latest in a flurry of venture-capital-backed funding rounds for AI-powered robotics companies. The round, led by Accel and Andreessen Horowitz, values the company at $2 billion, including the investment, according to a person familiar with the matter. Based in Palo Alto, Calif., Mind Robotics is building AI-powered robots that can perform physical work in Rivian automotive plants and other factories. The goal is for the robots to pick up parts, assemble components and manipulate items such as wiring harnesses.

People

Glaucoma therapy developer Qlaris Bio appointed Fred Guerard as president and chief executive. He most recently served as CEO of Opthea.

Exits

Medtronic plans to bolster its neurovascular portfolio with an agreement to acquire Scientia Vascular. The deal is valued at $550 million and includes undisclosed potential earnout and milestone payments.

Veeva Systems acquired Ostro, which offers an AI-driven chatbot for patients and doctors, in a deal valued at $100 million. The purchase price includes cash and long-term equity retention grants.

Alan, a Paris-based digital health platform combining health insurance, prevention and care services, closed a €100 million (about $115 million) funding round led by Index Ventures. The investment brings the company's valuation to more than €5 billion.

Nitra, a New York-headquartered operating platform for healthcare practices and their back offices, nabbed $72 million in combined Series A and B equity funding from investors including New Enterprise Associates.

Vitestro, a startup using robotics to automate the diagnostic blood collection process, completed a $70 million Series B round from investors including Labcorp Venture Fund and Sonder Capital. The company is based in The Netherlands.

Translucent, a New York-based AI platform for healthcare finance, raised $27 million in Series A funding. GV led the round, which included participation from New Enterprise Associates and FPV Ventures.

Carefam, a New York-based conversational AI platform for healthcare HR, emerged from stealth with $14.5 million from investors including Pitango HealthTech.

May Health, a French medical device company developing treatments for women with polycystic ovary syndrome, landed a €10 million ($11.7 million) investment from Sofinnova Partners, Trill Impact, Bpifrance and Nexpring Health.

Amigo AI, a New York-based platform for building and training patient-facing clinical agents, secured $11 million in Series A financing. Madrona led the round, which included participation from Optum Ventures.

• The Boom in Autism Therapy Is Medicaid’s Fastest-Growing Jackpot
   
• Seniors Paid Billions in Extra Premiums Due to Alleged Medicare Overpayments
   
• FDA Warns Novo Nordisk of Unreported Side Effects Tied to GLP-1 Patients
   
• FDA Approves Drug Trump Touted for Autism to Treat Other Neurological Disorder

• This billionaire wants to make science better, especially for AI (STAT)
   
• With $100 million, Vima pursues an oral drug for movement disorders (BioPharma Dive)
   
• Cancer haunts neighbors of Canada’s oil sands wastelands (New York Times)
   
• Cosmetic surgery investigation prompts warnings for patients, push for tighter safety standards (KFF Health News)

This newsletter was compiled by Matthew Strozier, Zachary Cole and Brian Gormley. 

Share your tips, comments and questions: vcnews@wsj.com

The team: Matthew Strozier, Yuliya Chernova, and Brian Gormley.

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