There are two distinct phases of fundraising in my opinion - in the first phase, you have something that looks like it could work, but you need time to really nail it. In the second phase, you found something that works, and you need capital to grow it really quick.

That first phase, your capital is normal used to pay people. If you can do it without raising money, then absolutely do it. Don't waste time chasing investors, spend time to nail that product that really works.

That first phase - the least viable fundraise should be done. The second phase is where you should be raising big rounds. This is where you know what's working, you know how to market it, and you just want to become huge. The money raised should already be clear why it's needed.

One core risk with that second phase is market size. You can have something that works, but you quickly hit max market size. Then you have to start experimenting again - but valuation is already high, preference debt already exists. It's best here to immediately stop spending.

If you could have - you should have designed phase 2 for a max market size. E.g if in an emerging markets, immediately start developing other countries, so when your core country is maxed, you have where to deploy the capital to.