Do you have any examples of startups that went to shit due to VC funding? I have a feeling you're completely right, and I want to recommend others to avoid it. I might need some examples to back this up though:)
Pebble. They had a great niche product that was growing organically and sustainably. VCs thought the smartwatch could be the next smartphone, and dumped a truckload of cash on them. Next minute they were burning all that cash pumping out too many new models.
Meanwhile everyone stopped wearing wristwatches except as a fashion statement. The original company would have survived this easily but the VCs wanted the next Apple or bust.