H1 2025 Recap: Key Signals from the Tech+Bio Frontier

Financial Climate & Deal-Making Power Shift

So, first things first, what does the market and venture capital space look like now when we enter H2?

I recently read a timely post by Audrey Greenberg, highlighting insights from reports by Endpoints News and DealForma. Biotech’s holding up thanks to big pharma – $98B in deals so far this year, with licensing surging (especially for Phase 2/3-ready programs) and blockbuster M&A like Merck-Verona and Sanofi-Blueprint leading the way.

On the flip side, venture funding has cratered, down 33% QoQ, with early rounds, IPOs, and follow-ons all at multi-year lows.

Also, human data is beating out platform hype, and in this shaky market, strategic M&A looks like biotech’s best path forward – especially with pharma still active, notably in China, which drove 38% of major licensing deals.

Speaking about the geography of biotech VC concentration, there is an interesting new biotech VC report from Nucleate Signal, which maps the top 10 biotech hubs by local investor count—led by San Francisco (1,752), followed by NYC (713), London (488), and Boston (478). Kudos to André Hurtado for pointing me to this post, btw.

The report introduces a new framework classifying cities by investor density × capital retention, grouping them into four types like Resilient Engines (e.g., SF, Boston) and Capital Exporters (e.g., NYC, London). Notably, San Diego, often considered a strong VC hub, is labeled Externally Dependent, raising questions about local reinvestment. The report, "Built from Within", was written by Lauren Stanwicks and Pranita Atri and could be interesting for those of you thinking about biotech investment strategy in H2 and beyond.

Finally, China… of course.

China’s biotech scene made some serious waves in H1 2025, and the industry’s paying close attention. Big pharma didn’t hold back; 14 major licensing deals were signed with Chinese firms, totaling over $18 billion, up from just two last year. Suddenly, a third of all deal value globally is coming from China-based innovation!

Investors are jumping in too: the Hang Seng Biotech Index is up nearly 80%, and 34 Chinese biotechs filed for Hong Kong IPOs in just the first half of the year.

Companies like Akeso and XtalPi made headlines in H1, for instance, with competitive drugs and AI-powered R&D, showing China’s not just catching up, but possibly also setting the pace in some areas.

That being said, there’s a real geopolitical edge to all this. U.S. policymakers are probably starting to worry about biosecurity and data-sharing, so while the business side sees opportunity, there’s growing tension in the background. Bottom line: China’s biotech rise is real, fast, and making the rest of the world take notice... in Europe too.

Gene Therapies, a Mixed Bag

The gene-editing space in H1 2025 was a mix of excitement and caution. On one hand, big players like doubled down, buying in a after promising CRISPR-based cholesterol data. The global market’s still growing fast, worth around now and climbing at a .