Difficulties in the Australian venture capital sector have raised concerns about “zombie VCs,” firms that remain operational but struggle to attract new funding. A significant instance is the restructuring of Titanium Ventures, one of Australia’s largest venture funds with $1.52 billion under management and a portfolio of 104 companies, including 18 unicorns. This restructuring follows Telstra’s exit from its limited partner positions, affecting its 62.5% stake in Fund II and 50% stake in Fund III. This situation highlights that even well-established firms are not immune to prevailing market challenges.