So Buddy (out of Dave and other ex-Microsofters) is delivered across Microsoft's Public Cloud, aka Azure. The basis of using cloud-based solutions is that almost everything spent on delivering the Buddy Platform becomes an operating cost, not a capital expenditure. And the major portion of the compute expense is paid via a subscription model. So costs of servicing customers can be tightly matched with receiving (greater) revenue (also subscription) from the customer.
Microsoft offers blocks of Azure time and resources (usually paid up front) but maybe there is some in-kind component of the Venture funds from Microsoft that (naturally) lock Buddy to their platform.
Here's one source of deeper info (amongst squillions!)
Short answer is by deploying Buddy as-a-Service, the question of intense capital investment does not arise.
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