Massachusetts’ biopharma ecosystem showed a rebound in capital markets while federal research support softened, according to industry snapshots from the Massachusetts Biotechnology Council. The state’s venture capital funding rose to $3.45 billion in the first half of 2026, up 25% year over year, alongside eight IPOs—the strongest start since 2021. At the same time, the report flagged weakening NIH research inputs, noting a decline in the total NIH award amount and a drop in the number of grants awarded, described as an early signal of shifting federal priorities. It also cited a decline in seed-stage capital and a shrinking workforce in 2025. Overall, MassBio characterized the picture as positive in exits and funding flow but still concerning for “shots on goal” at early stages that replenish the pipeline.