Josh Wolfe backs startups that make technology straight out of our favorite sci-fi movies, from Star Wars surgical robots to evocative metal detectors Total memory. But there’s one startup he’s particularly proud of because it “seemed the craziest at the time.” The company is inspired by X-Men.
“We had this crazy idea a few years ago and talked to a lot of people,” said Wolfe, co-founder and managing partner of Lux Capital. “Usually when we get these ideas, some people will say one of two things: ‘That’s absolutely brilliant, I’m in,’ or ‘That’s the dumbest idea I’ve ever heard.’ Both are extremely validating for us. We decided to start a company where none existed, to go out and find more extraordinary people with more special traits in the outside world.”
This company became Variant Bio, co-founded (with critical involvement from Lux) in 2018 by scientists Kaja Wasik and Stephane Castel. In its own way, Variant Bio fulfills its promise X-Men: The company develops therapies by studying the genes of medically relevant endpoints. To date, Variant has raised around $130 million from big names like SoftBank Vision Fund and General Catalyst – and of course, Lux.
Since its inception in 2000, Lux has helped start up more than 20 companies, and now the firm is formalizing that process. Lux Capital recently launched Lux Labs, a platform and strategy dedicated to helping scientific ideas move from labs to real-world environments. Variant Bio is considered a Lux Labs company.
“It’s rooted in the philosophy and the drive we have for it,” Wolfe said. “There’s also a perfect storm of what’s happening in the market right now that I think is a profitable investment strategy.”
Entrepreneurship is in retreat, Wolfe says, making this the ideal time to pursue a differentiated approach. Lux Labs will provide practical support such as IP rights, company formation, board member recruitment and networking.
“Sometimes it starts with a thesis,” Wolfe said. “Sometimes it starts with a specific progression. Sometimes it starts with a breakthrough scientist, an individual. We’re going to find a team and actually convince them that they should go back.”
Some companies in Lux’s portfolios considered Lux Labs include autonomous vehicle sensor maker Aeva, eye disease-focused Kala Therapeutics, scent digitization startup Osmo and nuclear waste cleanup startup Kurion. Kurion, acquired in 2016 by Veolia for $350 million, played a key role in the aftermath of Japan’s 2011 Fukushima disaster. Today Wolfe describes Kurion as a “huge financial success” and a “huge moral success “. But it was not clear at the time.
“We looked at the core and we looked at every part of the fuel cycle,” Wolfe said. “We tried to find companies. At that time, virtually no startups existed.”
Wolfe invests in deep technology, but it seems important to him to have a broad cultural view of the world. Throughout our conversation, he refers The Curious Incident of the Dog in the Night-Timescience fiction novelist Ted Chiang and is quick to quote Linus Pauling and Charlie Munger. Wolfe tells me over the phone that he has a “nostalgia wall” in his office, with GI Joe memorabilia, Star WarsAND Thundercats.
There are many reasons to get into technology, but the origin story of science fiction is particularly compelling to me. Because the line between fiction and reality has always been thin. Wolfe wants to support companies that do the seemingly impossible. And if something seems impossible, it means there is no pre-existing path to success. But maybe for that, it’s worth trusting Doc Brown from Back to the Future.
“The roads? Where we’re going, we don’t need roads.”
see you monday
Allie Garfinkle
Twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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UNDERTAKING AGREEMENT
– Evommunea Palo Alto-based chronic inflammatory disease treatment developer, raised $115 million in Series C funding. RA Capital Management AND Management of Sectoral Assets led the round and joined B Capital, Marshall Wace, Avego Bioscience Capitalexisting investors bioVenture’s key partners, EQT life sciences, Andera Partnersand others.
– LuxWalla Ypsilanti, Mich.-based developer of transparent glass-based insulation solutions, raised $51 million in Series B funding. Investments in Climate AND Barclays Sustainable Impact Capital led the round and joined Carbon capital, Conservation of Natureand existing investors Progress Energy Enterprises, Prelude Ventures, 2150, Khosla VenturesAND Baruch Future Ventures.
– flowera Stockholm-based energy system technology developer, raised €45 million ($48.9 million) in Series A funding. North Zone led the round and joined Giant enterprises, 82nd Invest, Sony Innovation Fundand angel investors.
– Descartesa San Francisco-based AI efficiency research lab, raised $21 million in seed funding. Sequoia Capital led the round and was joined by existing investors Zeev Ventures.
– Friend. hima Mountain View, California-based AI teacher raised $11 million in seed funding. BITKRAFT Ventures led the round and joined Educapital.
– Toileta San Francisco-based accounts payable, accounts receivable and cash flow management platform, raised $10.2 million in seed funding. Sequoia Capital led the round and joined Cherry Enterprises, Creandum, RTP Globaland others.
– Branda New York-based digital hospitality operations platform, raised $10 million in funding. Future Coastal Ventures led the round and joined Rich product ventures.
– MealMea San Francisco-based grocery ordering API, raised $8 million in Series A funding. Mercury Fund led the round and was joined by existing investors Capital of Palm Drive AND The Gaingels.
– Verax AIa Dallas-based developer of AI production control software, raised $7.6 million in seed funding. TQ Ventures led the round and joined The concept of entrepreneurship, Capital Cardumen, Seedkampand others.
– EFFORTSa San Francisco-based artificial intelligence platform for manufacturing firms, raised $7 million in seed funding. Craft business led the round and joined Heartland Ventures, Reverse equity, BoxGroupand others.
– IDA Sportsa Houston-based women’s high-performance footwear brand, raised $2 million in seed funding. Kynisca led the round and joined Elysian Park Enterprises, Firebird VenturesAND Tipt Ventures.
CAPITAL PRIVATE
– Ardian earned Ion beam servicesa France-based Peynier semiconductor equipment and services provider. Financial terms have not been disclosed.
– Gridiron Capital acquired a majority stake in Health Monitoring Networka healthcare marketing platform based in Montvale, NJ. Financial terms have not been disclosed.
– Montelsupported by The Riverside Companyagreed to buy SKM market forecastera Trondheim, Norway-based provider of analysis and advisory services for the energy and renewables sectors. Financial terms have not been disclosed.
– Red Iron Group acquired a majority stake in EverLine Apparel and Servicesa Houston-based provider of painting, sidewalk and other facility maintenance services. Financial terms have not been disclosed.
– Sequoia Financial Groupsupported by Kudu Investment Management AND Valeas Capital Partnersearned Family Asset Managementan investment advisory firm based in Charleston, SC. Financial terms have not been disclosed.
exit
– EQT group earned The PageUp Groupa talent management platform based in Melbourne, Australia, from Battery Enterprises. Financial terms have not been disclosed.
OTHER
– Samba TV earned Semasioa Chicago-based provider of contextual targeting and audience data solutions. Financial terms have not been disclosed.
THE PEOPLE
– Enterprises with equal opportunitiesadded a Boston-based venture capital firm Michelle Rhee as a partner. Previously, she was in Construction Inside.
– Equity HCI Partnersa private equity firm based in Washington DC, promoted Nate Novak towards the managing director and Michael Allen to the vice president.