The current venture capital (VC) landscape indicates significant distress among companies seeking funding. Recent data reveals that over 20% of VC deals are classified as down rounds, with this figure rising to 40% for late-stage investments. Additionally, the deal volume has plummeted by 70% since 2021, while the overall deal count has decreased by 50%. Notably, 40% of Seed and Series A rounds now include bridge financing, with more than 30% of these categorized as 'bridge down rounds.' This trend underscores the challenges faced by startups in securing funding, as one in five fundraising rounds is currently a down round, a figure that has nearly quadrupled since the first quarter of 2022. Amidst these challenges, private equity investors are reportedly looking for cash returns before committing to new funds, suggesting a cautious approach to investment in the current market environment.