The startup ecosystem, particularly in Silicon Valley, is facing increased challenges as the venture capital landscape becomes more demanding. Industry insiders note that the ease of securing venture capital in the past has led to a misconception about the difficulty of building successful startups. Alexis Kold highlights that neither founders nor venture capitalists are entitled to capital and must prove their worthiness. Zach Coelius echoes this sentiment, observing that the previous ease in securing funds made everyone look like geniuses, but now the reality of the hard work involved is becoming evident. Despite these challenges, some companies continue to succeed, as evidenced by Datarade's recent $75 million funding round.