Since the pandemic, more Utahns than ever have understood both the importance and the shortcomings of our healthcare system. Utah residents watched the power of innovation and technology to fight disease and systemic deficiencies in real time. MRNA vaccines, never before adopted for such widespread use, paved the way for a global recovery. Telemedicine adoption skyrocketed as hospitals and clinics virtually had up to 175 times as many patients. In this pressured environment, we created Altitude Lab, a startup incubator focused on developing a new, diverse generation of healthcare startups in Utah.
Healthcare innovation companies develop new medicines, diagnostics, services and delivery methods to improve patient access and quality of care. In Utah, this industry accounts for $13 billion of GDP. At Altitude Lab, our startups use novel technology to do everything from understanding and effectively treating cancer to eliminating post-operative opioid addiction. The pandemic provided tailwinds for our industry as a whole and revealed Utah’s potential as a leader in this rapidly evolving sector.
Photo appears courtesy of Altitude Lab
In 2021, Salt Lake City was among the top three emerging markets attracting venture capital. Compared to competing regions of Portland ($196 million) and Dallas ($310 million), Salt Lake City attracted a staggering $295 million in capital despite having the smallest population. But Utah has been batting above its weight class for a number of years. Over the past 10 years, research jobs in Salt Lake City have grown 74 percent, outpacing other metro areas like Raleigh, Houston, and Pittsburgh (66 percent, 44 percent, and 33 percent, respectively). For comparison, Utah’s healthcare innovation sector is now the 13th largest in the country with the highest concentration of jobs.
While the industry’s growth may come as a surprise to Utahns, coastal venture capitalists have noted that the state has attracted more than $2.3 billion in funding over the past decade. And with more capital flowing into the state, more startups are building in Utah than ever before. In 2021, Utah’s seed-stage health tech startups set a funding record of $79 million, 70 percent of which funded Altitude Lab’s startups. These promising macros have emboldened elected officials and community leaders to redouble their support for the growing sector.
In February, Salt Lake City Mayor Mendenhall released the Healthcare Innovation Blueprint, an economic development approach to improve educational and employment opportunities for underserved residents. Over the past two years, the University of Utah and Recursion have not only created Altitude Lab to support innovators, but have also worked with trade associations, BioUtah, state legislators and other industry leaders to launch BioHive, a build branding initiative a local community and to raise awareness of the industry inside and outside of Utah.
This is how a new generation of healthcare leaders is emerging in Utah. Together they are creating an opportunity for Utah to become a world-class healthcare innovation economy. From my seat at Altitude, I have the honor of watching women, minority and LGBTQ entrepreneurs become industry leaders, boost Utah’s economy and invent better patient care everywhere.
Startups such as Known Medicine, Teiko Bio and Peel Therapeutics are tackling various challenges in cancer biology. Known Medicine uses data science and three-dimensional tumor modeling to fight cancer smarter, while Peel has used evolutionary phenomena in other species to develop therapies for humans. Teiko aims to improve the efficiency of clinical trials and drug development by deeply understanding the immune response in patients. These Utah companies are being watched by top investors across the country.
Similar to the Silicon Slopes in Utah, foreign investors are the first to get involved. While local investors largely think healthcare investments are too risky (a rationale our tech sector heard 15 years ago), foreign investors have launched “organic funds” and are actively seeking opportunities to invest in Utah. Similarly, the growth of Utah’s healthcare sector has prompted companies to “import” talent from abroad. These tactics are unsustainable and require that we better educate our workforce about the interdisciplinary opportunities in our industry. This includes skills from heavy industry and automation, sales, marketing, materials science, computer science, chemistry and of course biology.
It’s time the people of Utah began to see our own potential to build a healthier future. We must balance the enthusiasm shown by foreign investors with our own passion for impact. Altitude Lab builds and supports the growth of our industry by supporting Utah startups. By nurturing our entrepreneurial culture and local talent, we are investing early in Utah’s next big economy.
To learn more about the startups incubated at Altitude Lab and career opportunities with the startups we support, visit us Höhenlabor.org and keep following us Twitter.
Photo appears courtesy of Altitude Lab
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