In response to recent cuts in federal research funding, Recursion Pharmaceuticals' biotechnology accelerator, Altitude Labs, has launched a new pre-seed fund to support early-stage life sciences researchers and startups. The initiative aims to bridge the funding gap created by reduced National Institutes of Health (NIH) support.
The program offers substantial financial and operational support, providing grants ranging from $100,000 to $250,000, along with 12 months of laboratory and office space access. Eligibility is specifically targeted at early-stage biotechnology companies that have qualified for funding through the federal Small Business Innovation Research (SBIR) program.
Chris Gibson, CEO of Recursion Pharmaceuticals, draws from personal experience in establishing this fund. "Earning our early SBIRs was a pivotal moment for Recursion," Gibson explained. "The few million dollars that came in via the SBIR mechanism in our early years allowed us to build the fundamentals of our platform upon which we have now raised over $1 billion in private investment."
Impact of Federal Funding Cuts
The initiative comes at a critical time as Trump administration policies have created significant uncertainty in the scientific research community. The administration's proposed cuts to NIH's "indirect" funding have particularly affected academic laboratories, which serve as essential sources of basic science research for biotechnology companies.
Federal grant programs have historically played a crucial role in biotech innovation. In 2023, the NIH provided nearly $1.3 billion in small business grants, offering vital non-dilutive capital that allows startups to develop their research without sacrificing equity stakes. These grants often provide essential resources for early-stage companies before they can attract venture capital investment.
Program Leadership and Requirements
The fund operates under Altitude Labs, an accelerator established by Gibson in 2020 in Salt Lake City. The leadership team includes David Bearss, co-founder of several therapeutics companies including Halia Therapeutics, and Altitude Lab's executive director, Chandana Haque.
"Federal funding disruptions are stalling groundbreaking biotech research," noted Haque. "With this fund, we are doing our small part to help secure the future of biotech innovation in America."
While the fund is open to any SBIR-reviewed company, successful applicants must relocate to Salt Lake City to access the program's benefits, including laboratory facilities and community resources. This requirement aims to foster a collaborative ecosystem for biotech innovation in the region.
The launch of this fund represents a notable private sector response to public funding challenges, particularly significant given the biopharmaceutical sector's generally muted reaction to recent NIH and FDA policy changes.
