Private financings for life‑science tools and diagnostics firms fell roughly 20% year‑over‑year in the second half of 2025, according to transaction analyses. Total H2 investment dropped to about $1.21 billion across 38 private deals, reflecting a tighter capital environment that hit tools companies hardest amid trade tensions and slower pharma R&D spending. Average deal sizes held steady or rose modestly, but deal counts declined and fundraising concentrated in a few large financings—most notably a $325 million private placement for a cancer‑detection firm and expanded rounds for several high‑profile biotech startups. The pullback signals that tools and diagnostics firms will face a more selective funding market into 2026, increasing pressure to demonstrate clear translational value and near‑term commercialization pathways.