Biotech companies face significant challenges in financing due to high R&D costs and long development timelines, with a notable decline in private funding observed from 2021 to 2023. Government initiatives, such as the Growth Opportunities Act, aim to bolster capital flow, while strategic partnerships can help mitigate investment risks. Despite a slight interest rate cut in the eurozone and the USA, the sector remains under pressure from macroeconomic factors and regulatory complexities.