Massachusetts biotech sees record-first-half VC funding and IPO surge despite modest NIH funding dip

The latest MassBio Industry Snapshot reports a strong start to 2026 for the state’s biotech sector, with venture capital inflows rising 25% year over year to $3.45 billion in the first half of the year.

Cambridge and Boston attracted the bulk of the capital, receiving 47% and 26% of the funding respectively, while Watertown contributed 12%.

Eight biotech companies went public in Massachusetts during the period, the highest number of IPOs since 2021, and the state completed $10.9 billion in out‑licensing deals across 27 transactions last year.

Massachusetts secured 9.3% of all NIH awards and leads the nation with $477 per capita in NIH funding, although the total award count fell 6.2% compared with the previous year.