The global venture capital (VC) fundraising market faces its worst year since 2015, with only 1,300 new funds projected, a significant decline from 4,000 in 2021. Limited Partners (LPs) are hesitant to commit more capital due to a lack of liquidity from IPOs. However, optimism exists for 2025, with expectations of increased distributions (DPI) and a rise in smaller, focused funds. Key trends include the emergence of boutique ventures, the transformative impact of AI, investment in frontier tech, and opportunities in diverse founder-led companies. LPs foresee a more favorable environment for innovation and returns, emphasizing differentiation and strategic investments.