Is there a collapse? They used their VC money to pay employees to build stuff. Now the money is spent. Employees get layed off. It could very well been worth i

Is there a collapse? They used their VC money to pay employees to build stuff. Now the money is spent. Employees get layed off. It could very well been worth it. What has been built might bring in return on invest for a long time. Isn't that normal? Isn't VC money intended to be used that way? Are VCs demanding to build jobs for eternity? Or is there some moral reason to not grow and shrink the work force while building a company?