As a founder who has an experience with kind of both and raised after more than a year generating revenue, I'd say the things you mentioned as negative are actually often positive. Facing with these problems head-on will burst a founder's "happy-bubble" of their perceived reality, and often early entrepreneurs tend to be over-optimistic. Inexperienced founders who raised funds may easily over-estimate the value of their business, hire prematurely, hire too expensive people who will not be ROI positive. Being forced to work with limited capital can make a talented & ambitious entrepreneur become very creative and efficient with its capital. The opposite of course is the distortion we're seeing in the market with "Softbankish" type of businesses who use their capital to distort the market. The optimal course of action is probably somewhere in the middle but my main point is I'd argue the things you mention as negative are actually positive and will allow for a founder, gradual and healthy growth.