Venture capital formation has seen a significant decline in 2024, according to an analysis by Stifel. Multiple factors, including the Inflation Reduction Act (IRA), a weaker market, and a slow pace of private equity exits, are impacting the flow of fresh capital into venture funds. The venture capital landscape is experiencing a 'traffic jam,' with many Series A companies struggling to raise Series B rounds. Only 10% of companies that raised their Series A in the first half of 2022 have progressed to Series B, a much lower rate than in previous years. Companies with strong growth prospects, such as those with $4 million in ARR and 100%+ growth, should still be able to secure significant funding, such as $10 million on $50 million+. Bridge financing activity has also declined after reaching record highs in 2023, possibly signaling a shift in investor focus back to new primary investments. Enterprise SaaS, traditionally a strong sector for venture capital with high exit success rates, saw a decrease in deal volume in 2023, marking the lowest level since 2017.