A fresh batch of industry data and analyst commentary points to a deepening capital drought for U.S. life-science startups. Jefferies analysts David Windley and Tucker Remmers report that public funding for biotech companies—via IPOs, follow-on offerings and private-investment-in-public-equity (PIPE) deals—“plummeted” in May amid regulatory and political uncertainty over drug pricing and Food and Drug Administration oversight. Only seven biotech IPOs have priced so far in 2025, with no transaction since mid-February, leaving young drug developers cut off from a traditional route to fresh cash. The public-market freeze is cascading into the private arena. Venture investors are moving more slowly, concentrating capital in fewer, larger rounds and pressing boards to shutter projects after setbacks. Fierce Biotech counts at least 11 U.S. companies that have closed this year, and managers warn more could follow if the outlook does not improve. Start-ups are resorting to increasingly unconventional measures to conserve cash. Windtree Therapeutics has agreed to buy a Michigan waste-management business and is eyeing a Houston apartment complex to generate steady revenue. Shuttle Pharmaceuticals cut employee pay by 70%, while the chief executives of Aditxt and NKGen Biotech have injected $233,000 and $2.65 million of personal funds, respectively, to keep trials running. The squeeze extends beyond drug development. PitchBook estimates AgTech venture funding fell to $1.6 billion across 137 U.S. deals in the first quarter, down nearly 25% in volume from the prior period. Yet pockets of demand remain: precision-farming transactions totaled $1.82 billion over the past year, with robotics and smart-equipment valuations rising 48.5%. Investors and advisers say the broader market could stabilize in the second half of 2025, but companies that need capital before then face a longer-than-expected winter.