What is happening with all these new venture funds?

The information you provided highlights several interesting trends and perspectives in the venture capital (VC) landscape:

Continued Interest in Venture Capital: Despite economic instability and layoffs, institutional investors seem to maintain their interest in venture capital as an asset class. This interest is driven by the belief that 2024 will be a good year to invest in startups with more reasonable valuations.
Commitment to Venture Firms: Investors are keen on maintaining connections with venture firms that have fulfilled their recent commitments. This suggests a level of trust and confidence in certain venture capital entities.
Fundraising Landscape Challenges: According to Steph Choo from Portage, the fundraising landscape is still challenging. Limited partners appear to be focused on funds with proven track records and successful distributions to paid-in capital.
Valuation Reset: The current environment with falling valuations may be attractive to institutional supporters who may have overpaid for deals in previous frothy market conditions. This presents an opportunity to secure better prices on investments in strong teams.
Deployment of Dry Powder: Some venture funds are looking to deploy their dry powder in the current market conditions. The idea is that historical venture success often follows periods of valuation resets.
Long-Term Perspective: Limited partners may be taking a long-term view, considering the typical investment horizon of venture funds, which usually spans around ten years. This indicates that they are not only concerned with short-term market fluctuations but also with the potential for long-term returns.
Cyclical Nature of the Venture Industry: The acknowledgment that the venture industry is inherently cyclical suggests an expectation of eventual recovery. Despite uncertainties, there is optimism that the industry will recover, and historical trends support the idea that successful periods often follow valuation resets.
Caution on 2024 Prosperity: It's emphasized that the sheer number of new fund announcements doesn't guarantee a prosperous 2024. While there is optimism for recovery, it is acknowledged that the venture industry's cyclicality means that prosperity might not be immediate or guaranteed.