The Massachusetts biotech industry faces a challenging year as both public and private funding decline sharply. Venture capital investment dropped over 17% to $2.75 billion in the first half of 2025, the lowest since 2017. NIH funding for Massachusetts institutions is projected to decrease by approximately $463 million. Contributing factors include a post-pandemic market correction and federal policy disruptions impacting university research investments. Industry leaders express concern about the instability and unpredictability facing the sector.