We've been giving some ink over the past couple of days to the quarterly MoneyTree and VentureSource venture capital reports. The numbers were all over the map and I pointed out in my column last week that they showed some unusual trends, including the biggest surge in venture capital deals since the good-old-dot-com-boom-days of 2000.

Obviously, we're not living through that period again. So, what's really going on in the venture business?

A new Venture Capital Outlook survey released today from the Washington Technology Industry Association offers a little more guidance on what can best be described as a turbulent market. And it's looking like it may get ugly on the layoff front in the coming months.

Perhaps the most disturbing figure from the report is this: Half of the venture capitalists surveyed said that their portfolio companies will cut staff by more than 10 percent in the third quarter. That compares to just 14 percent who responded that way during the previous quarter. (It may be time to get that resume in order).

That's bad news for anyone working in the startup business, but it probably indicates that the recession has persisted longer than many VCs anticipated.

Last fall, we reported on a number of layoffs at startup companies and while those may have bought some companies a little extra runway, the cash supplies appear to be running low.

Another interesting trend from the survey is that the average size of investments continues to decline. VCs say that about 50 percent of new deals will be in the $3 to $6 million range. That compares to 70 percent that were in that range last quarter.

Despite those trends, VCs at least say they are still looking for new opportunities. (Perhaps that's due to the continuing erosion of valuations at startup companies). A whopping 80 percent of respondents said they plan to make one or two new investments in Washington companies during the third quarter, historically the slowest quarter on record as folks head out for summer vacations.

Buerk Dale Victor's Andy Dale may have summarized it best in the press release when he we he said: "We are navigating for long-term success and anticipate a brighter 2010."

Here's a copy of the full report.

John Cook is co-founder of TechFlash. Follow him on Twitter @johnhcook.