This article tries to cover the reasons you are looking for:
- non-transparent elections:
Nicolás Maduro won the presidential election by a small margin
compared with the number of invalid votes. This dubious outcome led
opposition leaders to request an audit of the vote.
The audit took place, but not under the conditions the opposition
demanded.
- weak separation of powers:
nation’s top court has sided with the government in all 9,000 cases
between 2006 and 2014 involving disputes between the state and
citizens.
- diminishing freedom of expression:
the country’s main broadcasting network, RCTV, was forced to shut down
when the government refused to extend its license, and independent
reporting has slowly disappeared since. It is now practically
impossible to find traditional media that dare to criticize the
regime.
These are only a few reasons and the article argues also about small economical liberty, property rights issues, privacy issues, lack of checks upon executive branch.
If you are looking for a more official source, US Embassy in Venezuela also emphasizes democracy issues:
The United States condemns the Maduro regime’s increasing disrespect
for democracy and fundamental human rights in Venezuela. By
attempting to strip the democratically elected National Assembly’s
Vice President and opposition leader Freddy Guevara of his
parliamentary immunity and barring him from leaving the country, the
regime is pursuing yet another extreme measure to close the
democratic space in Venezuela, criminalize dissent, and control
information.