They switched to a subscription model (3 year licenses are still subscriptions), and since the release of ST4 in 2021, there has been exactly one release with new features (May 2025). All other releases have been bug fixes and "improvements".
I get that developers need to make a living, but 4 years of fixing bugs in your products is probably not what I want to be paying for, at least not when that is the only thing I'm getting. Speaking of releases, they're also usually 6-12 months apart.
I have used ST ever since the first version replaced TextMate for my use (TM2 spent something like a decade catching up to ST2), but I've since switched to Code and Zed (mostly Zed as of late, Code on windows until Zed is ready there).
ST was great back when it was still an actively maintained product, but in recent years (ever since ST2) it has felt like it was mostly on the back burner and other editors have passed it in functionality.
As for VC funding, it has done miracles for Code to have Microsoft sponsor it (and others). Code is currently the editor to beat for anything that doesn't involve opening large files.