Biotech venture capital funding slowed markedly in the first half of 2025, as reported by HSBC and BioCentury analyses. Total venture funds raised dropped to approximately $12.7 billion from $16.9 billion in the prior year. This decline affects early-stage financings and overall capital availability in the biotech sector, erasing gains achieved in early 2025. Despite this contraction, certain segments like life science tools and diagnostics saw increased private investments, suggesting selective resilience within the broader funding environment.