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>Instead of raising exactly what they needed, they over-raised by double or tripple that

Do you have any evidence of this? On the surface, it doesn't even make sense. There are two sides to every transaction; are you claiming that the entrepreneurs could see the slide coming, and anticipated it, but the financiers didn't?

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I was working for a startup in 2008, and before everything turned to crap, Sequoia gave us up front warning to start preparing for the coming apocalypse, which probably is the reason we survived and made it to an exit of some sort.

Over-raising seems like more proactive version of that (2008 still being relatively recent in investors' memory), and VCs likely suggested this to portfolio companies.

Slack publically admitted this. Saying money was cheap so they got a lot of it.

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