The recent uncertainty regarding National Institutes of Health (NIH) funding has prompted the creation of Altitude Lab Pre-seed Venture Fund, a new venture fund aimed at supporting early-stage biotech startups.
Chris Gibson, co-founder and CEO of Recursion, a biotech company that leverages AI for drug discovery, recognized the potential impact of NIH funding changes on startups and saw an opportunity to address this concern. The fund will invest between $100,000 and $250,000 in 10 to 15 biotech companies, focusing on those previously eligible for Small Business Innovation Research (SBIR) grants from NIH.
Gibson emphasizes the significance of SBIR grants, describing them as instrumental in Recursion’s early success. The 2014 SBIR grant enabled Recursion to establish its data foundation and develop its machine learning platform. The company has since attracted substantial venture capital and achieved a market capitalization exceeding $4 billion.
The Altitude Lab Pre-seed Venture Fund aims to bridge the potential funding gap for biotech startups during this period of uncertainty. Recognizing the high-risk nature of early science, Gibson believes that companies supported by SBIR grants have a greater likelihood of securing private funding in the future.
Additionally, the fund will foster the biotech ecosystem by providing startups with access to office and lab space at Altitude Labs facilities for a period of 12 months. Gibson envisions this initiative as a catalyst for creating a thriving biotech hub in Salt Lake City.
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