Spending Control and Overfunding in Startups

Many fintech startups, including Brex, are struggling due to overspending and overfunding, leading to a high burn rate. Brex burned through $17 million in cash per month in the fourth quarter, with expenses running at twice the level of revenue, prompting the company to lay off 20% of its workforce. The overspending may be attributed to companies raising more capital than needed and a mentality to 'go big' without sustainable growth plans.