They should have started small and refined the business model.
As PhiAlpha said, didn't have enough runway.

Hiring 15 people right out of the gate didn't allow them to trial and error everything over 4-5 years. Once they had a path to profitability, then you get the loan to go hire 15 people. You at least understand and know the model at that point.

The Athletic came screaming out of the gate, they had $139.5MM in funding (5 rounds), almost went bankrupt, eventually sold off to the NY Times, then re-org'ed with layoffs.

Media might be the hardest business there is.