VC Funding Uptick in Back Half of 2025 Has Analysts Hopeful for 2026

MassBio data show that although venture funding in 2025 fell to a six‑year low for Massachusetts biopharma, it still stayed above pre‑pandemic levels.4

Roughly 60% of all 2025 VC funding in the Massachusetts biopharma sector was announced in the back half of 2025, indicating a pronounced second‑half rebound.4

MassBio linked the stronger second half of 2025 to decreased interest rates and greater clarity on pricing and tariffs, factors that improved investor confidence.4

MassBio said a stronger H2 2025 in both VC funding and M&A activity is a key trend to watch for 2026, suggesting continued deal momentum into the new year.4

Analysts interpret the late‑2025 pickup as a sign of potentially healthier VC markets in 2026, especially if macro conditions (rates, regulation, pricing) remain supportive.4

Broader VC outlook reports for 2026 expect the reopened IPO market and accelerating M&A activity in 2025 to carry over, improving exit options and supporting continued capital deployment.3

Global venture forecasts for 2026 highlight an ongoing “flight to quality”, with strong, often AI‑driven companies continuing to attract outsized funding even as weaker companies struggle.3

Other 2026 predictions call for increased venture deployment vs. 2025, driven by large funds with ample “dry powder,” larger round sizes, and strong demand in AI, defense tech, robotics, and related sectors.2

Sources:

2. https://news.crunchbase.com/venture/crunchbase-predicts-vcs-expect-more-funding-ai-ipo-ma-2026-forecast/

3. https://corpgov.law.harvard.edu/2025/12/23/venture-capital-outlook-for-2026-5-key-trends/

4. https://www.biospace.com/business/vc-funding-uptick-in-back-half-of-2025-has-analysts-hopeful-for-2026