It has problems. If you have an idea that will take you a year to develop with 10 people, you need one million up front (simplifying a lot). But if the investors only give you 250k, they you need to spend time working on getting that missing 750k which will dilute your focus from the product you actually want to build. But the initial investor will still want that product.

I definitely think that there is some middle ground to find between not being able to rise money for any project, and being able to get 100M funding for a juicer.