Altitude Lab has announced the launch of a $2.5 million fund, Altitude Lab Fund, to provide critical early-stage capital to biotech startups impacted by recent federal funding shifts.
Salt Lake City, Utah, February 19, 2025
At the annual Altitude Lab Demo Day in downtown Salt Lake City, Altitude Lab announced the launch of its $2.5 million pre-seed venture fund to support early-stage biotechnology startups impacted by recent federal funding policy shifts. Named the Altitude Lab Fund (ALF), this initiative aims to bridge critical funding gaps for startups that have undergone the Small Business Innovation Research (SBIR) review process but now face delays or uncertainties due to policy changes.
With approximately $4.5 billion in annual SBIR and Small Business Technology Transfer (STTR) obligations, federal grants have historically been a cornerstone of biotech innovation. However, recent policy changes have placed an estimated 1,500 health-related startups in limbo, threatening critical advancements in medicine, drug development, and diagnostics. ALF is designed to provide these high-potential startups with the financial support and infrastructure they need to continue their work and grow within Salt Lake City's rapidly expanding life science ecosystem.
Altitude Lab Fund is currently funded at $2.5 million and will provide qualified startups with:
“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 upon which we have now raised over $1B in private investment to turn Recursion into a $4B publicly traded company with eight therapeutics in clinical development,” said Chris Gibson, Ph.D., cofounder and CEO of Recursion and Altitude Lab board chairperson.
He continued:
“Recursion founded Altitude Lab in 2020 to fuel more founders and enable more audacious companies in our industry. This fund is Altitude Lab’s way of supporting and accelerating the science on which our industry stands.”
"Altitude Lab Fund is going to be a $2.5 million fund focused on investing $100,000 to $250,000 in companies that are waiting for SBIR funds right now, but are currently seeing a gap in that funding. Uncertainty is created by not getting the SBIR funds. It is actually really problematic, because some of these companies want to hire their first scientist or put their first robot into the lab. Without these funds that they were expecting, those plans could be on hold. And so we're going to try and fill that gap with the Altitude Lab Fund. We made a couple of quick calls, and I'm excited to also share that serial entrepreneur David Bearss from Halia Therapeutics has joined as an anchor LP with Chandana Haque and myself in putting the fund together."
“Federal funding disruptions are stalling groundbreaking biotech research,” said Chandana Haque, executive director of Altitude Lab. “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.”
Salt Lake City has emerged as a national biotechnology hub, with Altitude Lab startups securing over 50% of Utah’s early-stage life science investment, totaling $154 million from 2020 to 2024. With its pre-seed fund, Altitude Lab is capitalizing on this momentum by actively recruiting top startups nationwide to relocate and join its program.
“Throughout my career—both as a faculty member and as a co-founder of eight biotech startups—I’ve seen firsthand how federal funding plays a critical role in advancing science and translating discoveries into life-saving medicines. Without early-stage support, many promising innovations would never reach patients. This fund is stepping in at a pivotal moment to ensure that the next medical breakthroughs don’t slip through the cracks,” said David Bearss Ph.D., CEO and cofounder of Halia Therapeutics.
ALF will be led by Gibson, Bearss, and Haque, with fees and carry from the fund supporting Altitude Lab’s long-term growth and mission. The fund is open to startups with an Impact Score of 20 or lower on a recent SBIR submission.
To learn more about Altitude Lab and apply for funding click here.
See previous TechBuzz coverage of Altitude Lab here.