The venture capital landscape is currently facing challenges, as highlighted by the PitchBook/NVCA Venture Monitor report. It indicates a decline in active investors, with 55% fewer participating this year compared to 2021, amid high deal counts largely driven by repeat investments. The lack of IPOs and M&As has resulted in reduced returns, causing crossover and angel investors to withdraw. Despite this, the Bay Area remains a key hub for VC, with significant capital still available, especially for high-growth sectors like AI. However, the overall funding environment is becoming increasingly strained, impacting future deal-making opportunities.