Yeah, I'm almost always a believer in the "win now" philosophy in dynasty start-ups, but a setup like this screams for spending most of your budget on high-upside youth. If you want to chase a stud into the $60-70 range, make it Barkley. Otherwise I'd go several dollars above AAV on every young guy with stud potential I could lay my hands on - Williams, Corey Davis, Kirk, Sutton, Penny, Michel, Engram, and so on. Even my back-of-bench guys would be young lottery tickets rather than veteran filler - guys like John Ross, Anthony Miller, D.J. Chark, Matt Breida.
Even if you hit on just a third of your picks, you'll have 4-5 studs - most of a starting lineup - locked down for 4 years at well below market value. That'll give you an incredible advantage for years to come.
In this particular format (assuming I'm reading right and there's no separate FAAB pool) I think I'd also set a hard cap of about $175 on my own auction funds. People are so used to being told to spend all their money in auctions that even in a league that uses that same money for FAAB there will be a tendency for owners to overspend. Having $25 in FAAB in-season when no other owner has more than $10-15 will more than make up for the downside of having $10 less to spend on draft day.