Biopharma financing in Q2 2025 grew modestly to $16 billion, up from Q1 but below historical highs. Despite available capital exceeding $55 billion across numerous venture funds, investment focus remains cautious, favoring clinical-stage and asset-centric ventures. Layoff rounds increased 32% year-over-year in H1 2025, with over 128 reductions reported, driven partly by pipeline failures and restructurings. Some biotechs have reversed downturns following strategic partnerships and recapitalizations. Meanwhile, startup funding continues in targeted niches, including autoimmune, rare disease, and AI-enabled drug discovery.