Biotech funding in the first half rebounded in aggregate, reaching the highest total since the start of 2022, but venture investors are leaving smaller startups behind, according to industry watchers. The “rebound” is concentrating capital toward later-stage and better-positioned companies while smaller players struggle to secure follow-on funding. The widening gap points to continued risk aversion for early-stage platforms and therapeutics without strong de-risking catalysts. For many biotech founders, the near-term effect is longer runways but fewer new commitments from seed and Series A buyers. The implication for the sector is straightforward: capital formation may remain bifurcated, with companies that can demonstrate clinical traction pulling ahead of earlier discovery-stage peers.