The second half of the year is looking bleak for companies backed by venture capital firms, especially for those at later stages.

The companies that are most starved for capital are those that are currently in Series C and D round fundraising. These are most likely to raise at lower valuations compared to their previous funding rounds, according to PitchBook’s latest VC outlook. For such companies, which are defined as late-stage companies by PitchBook, the current demand for capital exceeds the available supply by approximately 2.8 times. In the second quarter, 12.3 percent of late-stage companies that raised funds experienced a down round, up from 8.5 percent in the first quarter. READ MORE