What happened here isn’t necessarily poor management of finances, instead they failed to grow the business and thus couldn’t attract more investors for a second round.
If you keep your burn rate high while you fail to reach your sales targets then you need to pivot well before you run out of cash.
I’m continually astounded by the acceptance of businesses which fly themselves into the ground. Repeatedly failing to meet targets requires change, not just charging ahead and damn the torpedoes.
And I also think it's OK to have an excessively aggressive growth strategy too. Why not? Maybe it will work out.
The problem is when such a strategy can't be falsified until after all the money is spent. That's not a strategy, that's just gambling. It's been really common in my experience - when a strategy isn't hitting its objectives, double down on it, and spend more! Until ultimately all the investor's money is wasted.