Altitude Lab Launches Fund to Support Biotech Startups Amid NIH Grant Uncertainty

Salt Lake City-based accelerator Altitude Lab has announced a new initiative to support biotechnology startups facing uncertainty surrounding federal grants. The program aims to provide a lifeline to promising companies that may be impacted by recent policy changes affecting the National Institutes of Health's (NIH) Small Business Innovation Research (SBIR) program.

$2.5 Million Fund Established for Pre-Seed Investments

Altitude Lab has secured a fund of at least $2.5 million from private individuals to offer pre-seed investment capital to selected biotech companies. The accelerator plans to distribute this funding in parcels ranging from $100,000 to $250,000. In addition to financial support, chosen startups will receive access to mentorship opportunities and 12 months of lab and office space at Altitude's expanding life science hub in Salt Lake City.

To qualify for this support, biotechs must have previously applied for funding under the NIH's SBIR program and received an impact score of 20 or less. This criterion ensures that the fund targets high-potential startups that have already demonstrated promise in their research and development efforts.

Addressing the Impact of Federal Funding Disruptions

The initiative comes in response to recent policy changes affecting the SBIR program, which, along with the NIH's Small Business Technology Transfer program, accounts for approximately $4.5 billion in annual funding obligations. These programs have long been considered crucial for fostering biotech innovation in the United States.

Chandana Haque, Executive Director of Altitude Lab, emphasized the significance of the new fund: "Federal funding disruptions are stalling groundbreaking biotech research. With this fund, we are doing our small part to help secure the future of biotech innovation in America, to build the ecosystem of life science companies around Recursion in Salt Lake City, and also ensuring that the best female and underrepresented founders—who receive only 15% of SBIR funding and 3% of venture capital—have an opportunity to build the next great biotech."

Support from Industry Leaders

The fund has garnered support from prominent figures in the biotech industry. Chris Gibson, Ph.D., co-founder and CEO of Recursion and chair of Altitude's board, is among the private individuals contributing to the initiative. Gibson highlighted the importance of early SBIR funding in Recursion's own journey: "Earning our early SBIRs was a pivotal moment for Recursion. The few million dollars that came in via the SBIR mechanism in our early years allowed us to build the fundamentals of our platform."

David Bearss, Ph.D., CEO and co-founder of Halia Therapeutics, has also contributed to the fund, further demonstrating industry-wide recognition of the challenges facing early-stage biotech companies.

As the biotech sector navigates the uncertain landscape of federal funding, initiatives like Altitude Lab's new fund may play a crucial role in sustaining innovation and supporting the next generation of groundbreaking companies in the life sciences.