Does the current VC model only work in a bull run driven by cheap money? One the one hand cheap money driving growth of unprofitable startups subsidizing a mark

Does the current VC model only work in a bull run driven by cheap money? One the one hand cheap money driving growth of unprofitable startups subsidizing a market and on the other hand cheap money is ready to acquire these firms and /or invest in them once they IPO...but this only works if money remains cheap and in plentiful supply.