At least 90% of the projects I see don't need the $100,000 for a nice office space and whatever else they spend it on.
As an example, here is an itemized breakdown of why my project NEEDS a $100,000 investment.
$2000 - Back wages and small debt (past year)
$4000 - burn rate of founders (1 yr)
$1500 - equipment and hosting (1 yr)
$7000 - outsourced labor (1 yr)
$85500 - necessary because you are not interested in a $12.5K investment, even if we are the next Google. Therefore, this is added to convince you to invest in the company. This portion will simply remain on the books.
The last portion is necessary because you, the investor, would not take a $15K investments seriously. That's why we need a $100K investment.
It is not an optional line item: without it, we do not get the investment. It is crucial.