Don’t give Venture Capitalists too much credit. They aren’t the great seers of the economy. Most don’t know what they’re doing. Some are pretty good at it supporting startups. Few get lucky.
Being an industry like any other (they have a product, customer, market, and model), every moment in time is just a question of how that industry is doing. There is always waste, always reward, and always opportunity.
There is always too much money chasing too few startups… of a certain kind. There are always fund sizes too large… and fund sizes too small.
Look at Venture Capital macro economically and you can start to assess the ecosystem at large. Don’t ask yes/no questions in macroeconomics because they answer is never so definitive. Ask why, where, and how come.