An old mentor of mine taught me this, and my personal observations over the years have backed him up on it.
Having too much money is a greater danger to your venture than having too little money. If you have too much, you're just going to spend it on things that not only don't matter, but are likely to incur greater costs down the road.
I'm a believer that startups should be cash hungry (but not starved). It helps keep the focus.