The biotech sector faces a more cautious investment environment following a period of exuberance during the COVID-19 pandemic. Venture capital is flowing more selectively, favoring companies with clinical-stage programs over preclinical ones for the first time in years. Average investment amounts per deal have increased substantially, but the number of new companies receiving initial funding has declined compared to pandemic highs. Emerging biotechs are employing bearish strategies to navigate this landscape, focusing on capital efficiency and milestone-driven progress. Fundraising rounds such as TCG Labs Soleil’s $400 million raise and Brandon Capital’s largest $290 million fund highlight continued, albeit more targeted, capital availability.