MassBio’s annual report reveals a significant downturn in Massachusetts-based biotech funding, with a more than 17% drop in venture capital investments to $2.75 billion in H1 2025, the lowest since 2017. The state also faces an anticipated $463 million reduction in NIH funding in 2025 compared to the prior year. These declines follow a post-COVID market normalization compounded by federal research investment freezes impacting leading research institutions. Industry leaders express concern regarding the destabilizing effects on the Massachusetts biotech ecosystem.