While it looks as if funding for startups moved slightly higher in the last four months, there’s a big catch.

According to a new report from KPMG International and CB Insights, global deal activity for venture capital-backed startups continued a decline in the second quarter after hitting record levels one year ago. In fact, at the current rate, deal activity will just barely top 2013’s numbers.

“Many of the high-profile tech [initial public offerings] from 2015 continue to trade well below their initial offering price, putting pressure on private company valuations,” said Brian Hughes of KPMG. “This, combined with economic concerns in China and Europe, has continued to put a damper on VC investment.” Read more…