A recent report from Silicon Valley Bank (SVB) highlights significant challenges within the venture capital (VC) landscape. The report indicates that approximately one-third of U.S. tech unicorns, defined as companies valued at $1 billion or more, are currently struggling with no profits and declining sales. This figure has increased sharply from about 5% in 2021. Additionally, nearly 30% of venture-backed startups are classified as 'walking dead,' indicating severe financial distress. Experts in the field have raised concerns about the current liquidity environment, suggesting that while venture funds are resuming investments at a high pace, the initial public offering (IPO) markets and mergers and acquisitions (M&A) activity remain stagnant. Consequently, limited partners (LPs) are facing rising capital calls with little to no distributions. Some industry observers attribute the performance issues in VC to LPs' confirmation bias in their investment strategies, which may hinder their willingness to invest in unexpectedly high-growth sectors. The report serves as a cautionary reminder of the precarious state of many VC-funded companies in the current market climate.