Dimension, a biotech venture firm launched by former investors from Lux Capital and Obvious Ventures, has announced the closing of its second fund, Dimension II, raising $500 million. This follows the $350 million fund the firm debuted in January 2023.
In a blog post, the three co-founders and managing partners of Dimension, Adam Goulburn, Zavain Dar, and Nan Li, stated that Dimension II will continue to support companies operating at the “interfaces of life science and technology.” The firm is focusing on tech-powered therapeutics companies, as well as developers of tools and manufacturing technologies that support drug discovery and development.
In an interview, the co-founders indicated Dimension aims to make roughly two dozen investments with the new fund. These investments will range from several million dollars to upwards of $40 million, targeting new startups, growing companies and publicly traded biotechs.
Dimension positions itself as “contrarian” within the investment landscape, according to Goulburn. The firm differentiates itself by integrating experts from both life sciences and computing, reflecting the contemporary building blocks of biotech companies, Li explained. Its portfolio includes drug discovery specialists such as Chai Discovery and Kimia Therapeutics, as well as companies like Automata and Kaleidoscope Bio, which offer software and tools to help drugmakers “upgrade their own processes,” he said. This combination of expertise within a single firm is a unique aspect that is increasingly resonating with founders and industry professionals.
Li also noted Dimension’s selective investment strategy, favoring a smaller number of larger investments over a broader spread. Despite exceeding its initial fundraising target of $400 million, the firm reached its hard cap and declined additional investment opportunities. The core philosophy is to provide entrepreneurs with focused attention and support, irrespective of board meetings, and, with greater financial backing, to write larger checks and accrue significant ownership stakes.
“Many of our brethren end up on 20, 30 or 40 boards each. It’s impossible to actually know or pay attention to the top concerns and the top priorities of many of your management teams and entrepreneurs,” Dar said, noting their aim to hold about 20 positions per fund. Atlas Venture, a prominent startup creator, has expressed similar desires for “discipline” in raising a $450 million fund, as noted by partner Bruce Booth in a recent blog post.
While Dimension’s team combines experienced investors, the firm is relatively new in the industry. It has not yet recorded any investment exits, such as initial public offerings or acquisitions, which would generate returns. Currently, many of Dimension’s investments are in early-stage or maturing companies; the firm has maintained all of its original stakes.
Dimension is also going against a rising trend in biotech, where investors are increasingly favoring companies with more established track records. This shift has resulted in fewer, but larger funding rounds in 2024, with a rise in investments for biotechs with drugs in clinical testing. Dimension’s partners believe they can maintain a longer-term view, even in what Dar described as a “bear market” for the sector. With a ten-year investment window for each fund, Dimension has more flexibility to invest in transformative ideas and to stay the course with companies that require more time to develop.
Goulburn stated, “Big, highly transformative ideas are what we’re seeking. That, in itself, is ‘risk-on,’ not ‘risk-off.’”
