Assuming significant investment, I would agree. On the other hand, they might have just raised $50k from an angel or two, which wouldn't really cause issues wit

Assuming significant investment, I would agree. On the other hand, they might have just raised $50k from an angel or two, which wouldn't really cause issues with bootstrapping... ...unless they used it to bump up burn rate to the point where another round or layoffs were inevitable, because profitability before out of runway was never feasible. That's what it looks like, but hard to tell from outside.