Where have all the IPOs gone? In 2021, a biotech company went public almost every three days. This year, the sector has seen scant remains of that IPO blitz with fewer than 10 since 2025 began. The latest sizable debut came from LB Pharmaceuticals, which completed a $285 million raise this month following a monthslong drought of large IPOs.

The public funding drought is even harder to bear for private biotechs when other sources of cash have also dried up. Venture capital funding was down 65% in the second quarter, yet young drugmakers are being asked to do more with less. It puts biotech startups in a tough position, said Sara Choi, a partner at the venture capital fund Wing VC.

“The wisdom now is, build your platform to have commercial value and do it as cost efficiently as possible. Also, prepare for fundraises that can take a year plus,” Choi said. “I do not see rounds getting done like they were in 2021 — we could go blitz the market, and then in a few short weeks come together with a huge round and minimal diligence. Those days are probably behind us.”

Today, we’re exploring biotech’s funding drought and what it takes to successfully navigate a climate that asks drugmakers to make greater sacrifices for a shot at success. We’re also looking at AI agents that offer pharma a way to operate more efficiently in the R&D arena.

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