The fundraising crunch starts at the exit. Slow M&A and IPOs mean no distributions to LPs. No LP distributions means no "dry powder" for VCs to invest. This chain reaction is one reason why raising capital is so difficult right now.
1 in 5 venture rounds since 2023 has been a down round. A down round isn't failure. It's a strategic reset, reflecting a market that has fundamentally changed and now demands stronger fundamentals.
In 2020, 39% of SaaS startups raised a Series A within 2 years of their seed round. That number has now fallen to just 13%. This is what the Series A squeeze looks like.
VC fundraising hit a decade low pace in Q1 2025 ($10.0B via 87 funds). For founders, this signals one of the toughest fundraising climates in years. Your metrics should be undeniable. Prepare for a marathon, not a sprint.
71.1% of all VC deal value last quarter went to AI. If you're building here, focus on PMF, not hype. If you're not in AI, fundraising keeps getting harder—your story needs to be sharper than ever.
Thinking about launching your fundraise now? November & December are the worst months to start, with just 6.4% of deals closing in January. Here's what you should do.