UNM Rainforest Innovations reports patent growth as startup funding gap persists

The University of New Mexico’s Rainforest Innovations reported a surge in intellectual property activity during fiscal year 2026, fielding 103 invention disclosures and supporting 61 new U.S. patent applications — 36 of which were issued — even as its affiliated startups continue to face a persistent early-stage funding gap in New Mexico. The nonprofit, operational since the mid-1990s, helped spawn seven new startups in FY26 and continues to shepherd technologies from university labs toward commercialization.

“The university can really best help the state by helping it create jobs from startups,” said Lisa Kuuttila, CEO and chief economic development officer for Rainforest Innovations.

Patent momentum and startup formation

Rainforest Innovations’ FY26 figures underscore growing invention activity at the university level: 103 invention disclosures and 61 U.S. patent filings, with 36 patents issued. Seven new companies formed with the nonprofit’s help in the year, including High Biopharma (therapeutics for chronic pain), Vertical Longevity Pharmaceuticals Inc. (vaccine development), Accessibility NextGen Inc. (software), Aetherion Inc. (small and micro nuclear reactors) and SELA Photonics (high‑power semiconductor lasers for quantum systems).

Government grants remain a reliable funding path for many Rainforest-connected ventures because of ties with the state’s national labs. Kuuttila pointed to the New Mexico State Investment Council’s (SIC) moves to back venture capital firms that invest in New Mexico companies as helpful, and she singled out local investor groups such as Tramway Ventures and New Mexico Angels for bringing private capital into the ecosystem.

Funding gap and geographic challenges

Despite those supports, Kuuttila said New Mexico lacks sufficient seed capital and risk-tolerant investors to consistently fund the earliest stages of commercialization. “It’s a little harder for our startups to access (early-stage capital) quite frankly because (investors) are not willing to take the risks that you have to take to invest in one of these baby companies,” she said, adding that many firms end up seeking funding from out of state.

Mahmoud Reda Taha, a distinguished professor and regents’ lecturer in UNM’s civil, construction and environmental engineering department, credited Rainforest Innovations with critical help patenting technology for his startup, TS-Nano, which manufactures sealing polymers for abandoned oil wells. Sandia National Laboratories helped develop the underlying technology, and TS-Nano produces it out of UNM’s Bioscience Center while seeking larger Albuquerque space as it secures deals with oil and gas companies.

• TS-Nano has used its technology to seal 66 wells across the Permian Basin, Canada, Alaska, Pennsylvania and the Gulf of Mexico.
• The startup has received more than $1 million in grants from the New Mexico Economic Development Department and the U.S. Department of Energy.
• TS-Nano later found an investor who provided $1.5 million but continues to seek additional capital for international expansion into markets such as Malaysia and West Africa.

“What we manufacture is polymers on steroids,” Taha said, describing the products’ ability to seal hairline cracks in abandoned wells and prevent methane leaks. He acknowledged scaling challenges even as the company aims to be “an international player in this area.”

Outlook

Rainforest Innovations’ patent growth and new company formation indicate a robust pipeline of university-born technologies, but leaders say broader changes in state investment strategies are needed to convert that innovation into sustained local commercialization. Kuuttila suggested that increased SIC investment in early-stage venture capital and a larger base of New Mexico seed investors would help startups bridge the gap between grant funding and large-scale private investment — a crucial step for companies such as TS-Nano that are already operating across multiple regions and pursuing global markets.