If all else were equal, I would agree. Less money to invest means less money invested.

However the cost of doing a startup has also gone down. By more than the availability of venture capital. Therefore more startups can get going. Also companies like Facebook and Google have more willingness than companies had in the past to buy small companies that otherwise might be looking for venture capital.

When you put these factors in, it is not at all clear to me that the situation is worse for entrepreneurs.