Founders are worried about losing to competitors who raised more money. In actuality I’ve only seen counter-examples:

Tensor beat magic Eden with 2 orders of mag less $.

Solana beat other L1s with 2 order of mag less.

Jupiter raised 0, all VCs passed.

Less money = more sense of urgency more chip on the shoulder.

Raising too much VC capital is the impermanent loss they never told you about. 

Being capital efficient is concentrated liquidity and concentrated focus on success.

you probably don’t think about liquidity enough // it is what it is  // build value, not valuation

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i feel like there was a great Silicon Valley ep about this.. where his friend/acquaintance raises way too much and ends up losing his co. from it