A new report from Pitchbook reveals significant stagnation in the startup exit market, indicating a challenging landscape for investors. The report highlights that cash returns to limited partners have plummeted to levels reminiscent of the global financial crisis, with only 45.5% of VCs and angel investors actively funding startups in early 2024. Pitchbook notes a backlog of 57,674 companies awaiting exits, a record high, with late-stage firms making up 32.4% of this total. The situation has put pressure on VCs who hold $2.5 trillion in unicorn valuations, many of which have been dormant for nearly a decade.