Early-stage funding slumps toward post-pandemic low, piling more pressure on biotech startups

A slow start to 2026 has put first-time biotech financings on course for their worst year since before the pandemic, reducing the already limited funding opportunities available for startups.

The data come from J.P. Morgan’s first-quarter biopharma licensing and venture report (PDF). Analysts tracked 50 seed and series A investments collectively worth $2.3 billion over the first three months of 2026. The data reverse the encouraging trend seen in the first quarter of 2025, when J.P. Morgan reported (PDF) that the number of investments rose to 60 and their combined value reached $3.7 billion.  READ MORE

Venture capital is not what it was

U.S. venture capital investment easily hit an all-time record in Q1 2026, according to data released today by PitchBook and the National Venture Capital Association. In fact, domestic startups raised more last quarter than in any entire year, save for 2021 and 2025.

Yes, but: U.S. venture capital investment decreased quarter-over-quarter, if you remove just five Q1 2026 transactions.

Why it matters: Traditional VC metrics no longer make much sense, at least if used to gauge the health of America's startup ecosystem. READ MORE