[toby-]

The company's founder did state this in an email however:

>The cost of "Facebook and Google ads, payments for loans, and other expenses" ate through the company's funding quicker than Mr Evans anticipated.

>"A large proportion of the revenue went toward paying for Facebook ads to bring traffic to the site," the email says.

[tanilama]

What I meant this level of funding is not adequate for the company's operation, regardless of the planned ad spending.

Yes they shouldn't spend on ads, like not at all. They should instead focus on raising more money to be serious.