Money, like medicine, can turn poisonous in excessive doses. And too much cash too early often becomes the very thing that transforms a promising startup into a lethargic flop. This isn't a theoretical problem. I’ve seen it happening consistently for the past 5+ years, across sectors, with predictable and devastating results.

Most tech companies need vc money to bootstrap product development and businesses. The question is how much is "too much"? A very subjective question, especailly considering huge diferences across different domains and industries. It's easy for most people (investors/founders/LPs) to simply follow market trends. Few have cool heads at volatile times. The market will play out anyway.