No amount of money in the world is going to get you to product-market fit. And raising too much money before you find product-market fit will usually kill your start-up.
(1) Why is it that more money doesn’t help you find product market fit? Because building your core product and understanding your customers’ needs are best done by a small team. Small product teams work better because product innovation requires brainstorming and collaboration, and they are easier with fewer people. Hiring more people doesn’t help.
(2) This is why startups beat large companies. Having a larger team doesn’t help you with core product innovation.
(3) If you expand your company before finding product market fit, you’ll pay the price in two ways: (i) your burn rate will increase, (ii) it will actually be harder to find product-market fit because you’ll be distracted by other activities. This is a common mistake made by some VCs — after investing in a company, they push to expand headcount without verifying that the company has found product-market fit.
(4) Cf. Why you shouldn’t raise too much money in your early funding rounds.