In reality, we see many examples that too much capital makes your startup unfocused and it’s a curse, not a blessing. When you get funds at the beginning it’s putting you in the wrong position of ‘spending’ money and not earning it. To minimize it as much as you can is a smart move that helps to build a healthy business. One that is earning money and not spending all of it. It sounds (too) basic but you will be surprised how many founders forgetting it after the raising the first round. You wish to start lean and mean and keep it for as long as you can.
Limited capital makes companies focused.
This is an important factor when you wish to build a business and make it profitable in limited time.
The main limiting factors for startups: