Would you prefer to start a business with too much initial capital or too little?
I believe you're better off starting a business by erroring on the side of having too little money.
Companies are like projects. Have you ever noticed how they always seem to use all the time and money allotted to them? Nothing ever seems to finish in half the time and half the cost of the plan.
You see this in startups, too. They sometimes start with far too much money. Fast forward two years later and the money is gone.
The founders spent their time doing all the things that look like building a business, but aren't. These include fancy offices, middle managers, and trips to conferences.
The founders with too little money at the start have to figure out hard stuff without being able to throw cash at problems. They're forced to get creative to accomplish things with little to no budget. That's a gift.
Oh, and the best thing about raising less: founders keep more of their companies that way.