I watched that video recently. He raises a good point about the value of having cash up front, but my worry there is the liability it creates. There is a 1-year period when you might have to refund some or all of it, which is a long time IMHO.
But even if there is a liability you have to calculate the percentage of people that will want a refund. If it is "high" (whatever that is..) you have a much bigger problem (people don't like your product or service).