If I put on my tinfoil hat tight enough to cut off my circulation, then a rumor/myth of a "Series A Crunch" which makes funding seem dear is in the best interes

If I put on my tinfoil hat tight enough to cut off my circulation, then a rumor/myth of a "Series A Crunch" which makes funding seem dear is in the best interest of the VC's providing such funding. Though I don't know any of them, I'm sure must be at least some VC's with the integrity to say that from their perspective, they don't see a crunch. But it would be equally fair for them to say that they see a whole lot more startups happening recently, so competition between startups resulting in price/terms pressure does exist even if the subjective term "crunch" is a bit overstated. Since I don't try to keep up with every new startup that is created, my perspective might be wrong, and my assertion of there being more startups now days could also be wrong. None the less, it sure seems that way to me from my casual reading.