Why Silicon Valley is raising billions while San Diego biotechs struggle

Investors are being stingy in San Diego.

Cash-poor venture capitalists are consolidating their money into what they believe will yield the biggest payoff — startups in big cities building AI. Now, head south down the California coast to see local life science startups feel the squeeze.

San Diego companies hit a six-year low for fundraising in 2025.

San Diego County startups raised $897 million in the last three months of 2025, down 36% from a year ago — and this was the best quarter of the year.