Brilliant ideas & strategies, an enthusiastic workforce, and utilizing funds optimally are often at the core of successful tech startups.
If you analyze where you might spend most of the funds you raised, you will realize that payroll and infrastructure consume over 50 to 60 percent of it. Wouldn’t it be great if you can save some of these huge expenses? You could re-channelize saved funds for other activities, such as sales & marketing, utilities, etc.

“Okay, so what you’re saying here is, instead of hiring software developers with 6 years of experience, I should instead hire somebody with 2 years of experience instead because they are easier to hire and I wouldn’t have to pay them as much.”
Absolutely NO!
Source: https://www.entrepreneurshipsecret.com/how-can-startups-utilize-their-funds-optimally/