Biotech Startups Face Uncertainty Amid NIH Funding Limits
Government Grants Under Threat
Earlier this month, the Trump administration directed the National Institutes of Health (NIH) to impose limits on specific types of funding it provides to research institutions. Although a federal judge has temporarily blocked the policy change, government grants to early-stage biotech startups could still face delays or be eliminated entirely, according to Chris Gibson, co-founder and CEO of Recursion, a biotech that uses AI for drug discovery.
Opportunity in Uncertainty
Gibson, together with serial biotech entrepreneur David Bearss, saw the confusion as an opportunity to launch a pre-seed venture fund, dubbed Altitude Lab Pre-seed Venture Fund, that will seek to invest $100,000 to $250,000 in 10 to 15 biotech companies.
The Fund
The fund will be managed by Altitude Lab, a Salt Lake City-based, non-profit, life sciences accelerator that Recursion set up five years ago. Startups that were qualified for Small Business Innovation Research (SBIR) grants from the NIH are invited to apply to the fund.
The Impact of SBIR Grants
"SBIR grants are near and dear to my heart," Gibson said. "The first thing I did when we started Recursion was write an SBIR grant, and we got $1.46 million from the federal government." This 2014 funding helped Recursion create its dataset, which formed the basis of its machine learning algorithm and drug discovery platform, Gibson said.
Filling the Gap
Gibson hopes the fund will "fill the gap" for new biotechs during this period of uncertainty around NIH funding. "Early science is super risky. It’s hard to know how these companies are going to turn out, but companies funded with SBIR grants are dramatically more likely to go on to be able to raise private money," Gibson said.
Growing the Ecosystem
The fund will also help grow the biotech ecosystem next to Recursion. The startups will receive 12 months of office and lab space at Altitude Labs facilities, allowing them to focus on their research and development.
Conclusion
The Altitude Lab Pre-seed Venture Fund aims to provide a vital source of funding for early-stage biotech startups, helping them to overcome the uncertainty surrounding NIH funding. By investing in these companies, the fund will not only support the growth of the biotech ecosystem but also help to bring innovative treatments and cures to patients.
Frequently Asked Questions
Q: What is the purpose of the Altitude Lab Pre-seed Venture Fund?
A: The fund aims to provide funding to early-stage biotech startups, helping them to overcome the uncertainty surrounding NIH funding.
Q: Who is eligible to apply for the fund?
A: Startups that were qualified for Small Business Innovation Research (SBIR) grants from the NIH are invited to apply to the fund.
Q: How much funding will the fund provide to each startup?
A: The fund will invest $100,000 to $250,000 in 10 to 15 biotech companies.
