Venture capital funding in biotechnology is exhibiting increasingly selective and competitive trends. The Biotechnology Innovation Organization's 2025 report highlights a contraction in newly funded biotech startups post-pandemic, with capital concentrated in more mature clinical-stage companies. Fund sizes have grown while the number of new entrants has declined, indicating a market shift towards consolidation and risk aversion. Funds like Omega and TCG Labs Soleil have recently raised substantial capital, emphasizing strategic portfolio-building in focused areas such as oncology and immune diseases.