Venture capital firms in India, including Blume Ventures and Peak XV, are maintaining modest fund sizes amid tempered expectations for startups, with Blume’s next funds capped at $290 million and Peak XV reducing its latest fund by $465 million. Investors face pressure from limited partners for returns, leading to a reassessment of investment strategies as the market stabilizes post-pandemic. Many VCs are sitting on uninvested capital and are focusing on quality over quantity, with a trend towards smaller, more disciplined funds of $200-250 million. This recalibration reflects a shift from inflated valuations to more realistic assessments in the startup ecosystem.