The number of active venture capital (VC) investors has plummeted by over 25% since 2021, with just 6,175 VCs investing in US companies in 2024, down from a peak of 8,315. This consolidation has favored a few mega-firms, which garnered more than half of the $71 billion raised in 2024. Smaller VCs are struggling to survive amid a slowdown in initial public offerings and limited funding options. Many have exited the market, with the likelihood of a higher failure rate for mid-sized firms in 2025 if returns do not improve. The landscape remains increasingly challenging for new entrants.