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.
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.