Dimension Biotech Secures $500 Million Fund to Propel Tech-Driven Therapeutics
Dimension, a burgeoning biotech venture firm led by former investors from Lux Capital and Obvious Ventures, has closed its second fund in just two years. The new fund, dubbed Dimension II, amassed $500 million, surpassing the initial $350 million raised by Dimension in January 2023. According to a blog post from the firm’s three co-founders and managing partners, Adam Goulburn, Zavain Dar, and Nan Li, Dimension II will continue its focus on companies operating at the “interfaces of life science and technology.” The firm intends to invest in technology-driven therapeutics companies as well as developers of novel tools and manufacturing techniques that improve drug discovery and development.
In a recent interview, the co-founders mentioned that Dimension anticipates making roughly two dozen investments with the new fund. These investments will range from several million to over $40 million, supporting new startups, expanding companies, and established public biotechs.
Contrarian Approach in a Competitive Market
Dimension distinguishes itself from its investment peers by taking a “contrarian” stance, according to Goulburn. To reflect the evolving landscape of biotech, the firm’s team is staffed by experts in both life sciences and computing, said Li. The company’s portfolio includes drug discovery specialists such as Chai Discovery and Kimia Therapeutics. It also includes companies like Automata and Kaleidoscope Bio, which specialize in software and other tools that assist drugmakers in upgrading their processes. Li noted that having this integrated expertise within one firm is unique and is beginning to resonate with both founders and industry professionals.
Dimension is also aiming for selectivity, concentrating on a smaller number of larger investments rather than spreading its resources too thinly, Li explained. Despite exceeding its initial fundraising target of $400 million, the firm reached its hard cap, turning down further opportunities to raise additional funds. The strategy is to provide entrepreneurs with more focused attention and support continuously and, with greater financial capacity, to issue larger checks and obtain larger ownership stakes. Dar stated that the firm aims to manage around 20 positions per fund, in contrast to other firms whose partners often serve on numerous boards.
Atlas Venture, a prominent startup creator, highlighted a similar desire for “discipline” when raising what partner Bruce Booth described as a “modest” $450 million fund in a recent blog post.
Long-Term Vision in a Challenging Market
While Dimension’s team members are seasoned investors, the firm is relatively unproven compared to its more established competitors. It has not yet recorded any investment “exits,” such as an initial public offering or an acquisition, that generate returns. Many of Dimension’s portfolio companies are young and maturing. The firm has retained all its stakes to this point.
Dimension is also counteracting a growing trend in biotech, as many investors are directing funds toward more established companies. This trend has led to fewer but larger funding rounds in 2024 and a surge in investments in biotechs with existing drugs in clinical testing. Dimension’s partners maintain a longer-term perspective, despite Dar acknowledging a “bear market” in biotech. With the firm’s ten-year window for each fund, Dimension can make more ambitious investments and support companies that may require longer to develop.
“Big, highly transformative ideas are what we’re seeking,” Goulburn said, emphasizing that this approach is “risk-on,” not “risk-off.”
