How has the life sciences ecosystem in Massachusetts evolved over the past year?

The funding environment was slow. We saw an uptick in venture capital funding for Massachusetts companies throughout 2024. This momentum has carried into 2025, with a strong start for venture funding in the state.

MassBio released the Vision 2030 report — a five-year strategic plan to ensure Massachusetts remains the global leader in life sciences. We continued to support early-stage innovation through MassBioDrive, our accelerator program. We hosted our second annual Align Summit. Massachusetts remains the best place in the world for research and development, and MassBio stands committed to supporting it.

What is the current state of venture funding in Massachusetts?

2024 venture capital funding exceeded 2023. We saw many mega rounds, with 48% of all VC funding for Massachusetts companies concentrated in the top 20 rounds of the year. We saw six IPOs in 2024, up from two in 2023. In 2025, I am encouraged by IPOs and M&A. My hope is exits will free up capital for investors to reinvest in early-stage science — seed, pre-seed, and Series A — where funding is most needed.

What makes Massachusetts a life sciences leader?

With just 2% of the nation’s population, the state pulled in nearly 30% of the country’s venture capital funding in 2024 — second only to California, which is seven times its size. Massachusetts also holds 15% of the nation’s drug pipeline, which does not account for the large, non-Massachusetts companies developing here. International companies come here to set up a physical presence or partner with early-stage research for licensing and acquisitions.

When the first Life Sciences Initiative passed, only seven of the world’s top 20 pharma companies had a presence. Now, 18 have physical offices. Industry, academia, and government collaborate. Early-stage and commercial companies partner to turn ideas into treatments. Without that collaborative spirit, Massachusetts would not lead the way it does today — and patients would not benefit from the life-changing advancements happening here.

Take the story of Bristol Myers Squibb and Karuna Therapeutics. Bristol Myers Squibb came to Massachusetts and acquired Karuna. That partnership led to the first major advancement in schizophrenia treatment in decades. It is the Massachusetts story — early-stage companies developing great science, commercial giants with a local presence, and financial partnerships that turn ideas into treatments.

As competing states work to attract biotech companies with generous incentive programs, how will the State stay a leader?

In 2024, the state approved the third reauthorization of the Life Sciences Initiative, securing continued funding for the industry. That includes grants for non-profits, tax incentives for hiring companies, and early-stage capital to help de-risk companies and attract venture funding.

Competition is good — especially for patients. I am confident Massachusetts will remain the leader, but the stronger the competition behind us, the better it is for everyone.

What impact do you see the new administration having on Massachusetts?

A strong, predictable business climate will help companies and investors understand what to expect — and that will drive more investment. Additional rate cuts would help. A new FTC with more flexibility on M&A could also spark growth. If these changes happen, I expect the industry to pick up quickly.

Massachusetts relies on NIH funding more than almost any other state. While cuts do not immediately impact industry, long-term reductions in research funding slow the creation of new companies. Fewer companies mean less innovation and fewer clinical trials —delaying life-changing treatments for patients. Protecting research funding is critical for the future of life sciences.

How is MassBio preparing its members for the industry of the future?

We cannot take our eye off where the future is going — and that future includes AI for drug discovery. AI has the potential to speed time to market and personalize medicine in powerful ways. MassBio ensures our member companies get the education they need to use AI in drug development. We are also backing early-stage companies with AI at their core, including a dedicated MassBioDrive cohort for AI-driven drug development.

As international relationships grow more complex, we want Massachusetts to be a place where companies feel confident producing medicine. It may not always be large-scale, but for small-batch or clinical-scale manufacturing — especially for cell and gene therapy (CGT) and advanced modalities — Massachusetts has the infrastructure and expertise.