Recent discussions among venture capitalists highlight the changing landscape of VC funding as the industry navigates through a downturn. According to insights from the 2024 Carta State of Startups report, fewer VC funds in recent vintages are achieving Distributed to Paid-In (DPI) ratios, and the median Total Value to Paid-In (TVPI) metrics are on a decline. This raises questions about whether the current situation reflects a structural decrease in returns or is merely a cyclical phase. Additionally, the emergence of new crypto VC funds and increased institutional investment in crypto ventures suggest a shift in focus within the industry. As startups adapt to a leaner funding environment, experts propose that metrics such as aggregate Annual Recurring Revenue (ARR) growth and runway duration may become more relevant indicators of portfolio health than traditional metrics like Multiple on Invested Capital (MOIC) and TVPI. Overall, while larger brand-name funds dominate the current funding landscape, there is a growing momentum for smaller funds and emerging managers, indicating potential opportunities for the next wave of innovation.