Ask HN: For a startup, what are the consequences of a bad serie A ?

Hello HN, I am seeking your knowledge today because the startup I am working in is in a tough spot, and I want to know more about the reasoning/consequence of our decisions. We raised seed money last year for about a bit more than 4 millions $ and due to our traction/growth, investors pushed us to hire more people to grow faster. We were planning to raise more money (round A) at the end of the year and our expectations were high > 20 millions $, VC were full of promises. Sadly, it was before today economical context set in, and after recent discussion with VC, the speed at which we burn cash due to salaries make them afraid/reticent to invest in the new round. We are still able to raise, but much less, let's say < 10 millions $ but for the same dilution. So it was decided to layoff people, even if we are already understaffed, because founders don't want to dilute that much for so little money. Founders want to increase company runaway to last until end of next year, in order to let us time to have better numbers to show and hope that the economical context will be more favorable to them to raise money. So my question is, is there a downside, beside for founders and dilution, to make a Serie A at such a low lvl ? What are the consequences/downside if we decide to take the money even if it is not at our best advantage ? Thanks for your knowledge/answer :)