Having said that, the rule of thumb is that you want at least 12 months of runway, and that's at the rate you want to go at. It takes typically around 6 months (if things go well) to raise VC money (unless they come to you - which is pretty rare).
From what I understood, Groove had 8 months at the current runway - before hiring the additional people they want to bring on board. That's typically when you start raising before you go into the danger zone with your runway. Also, considering the current perceived drought of Series-A funding, a $5M offer for a business generating $16k monthly is an outlier.
Of course, I hope Groove does well and never needs this money. Also, it's possible the deal terms were not favorable, though it's not mentioned specifically in the post. If that was not the case, in my opinion they had a chance to significantly derisk their business and they choose not to take it. Time would tell if their gamble pays off or not.