Maybe what the parent comment said was an over simplification. I would say most startups today go out of business because of poor spending choices, bad oversigh

Maybe what the parent comment said was an over simplification. I would say most startups today go out of business because of poor spending choices, bad oversight be investors and board members, poor management in general (though financial management is the highest among the issues I see), and poor product market fit. Is this because of investment? I would argue yes it is. You learn far better financial practices when you have no cash on hand. Investors and VC's honestly aren't always the best board members and don't always help. Product market fit can be masked by investment money. My comments are all anecdotal however I do work as a consultant for VC's who invest in or purchase startups. So there is that. One other area in which people will regret taking investment money if they are not careful is at the time of exit. Many company owners who seek investment money don't realize just how quickly they are dilute themselves. While this won't put the company out of business, it may put an individual out of the business of running a second startup. It is wise to be careful taking investment money.