1,7m is a lot of money for a start-up. Non-blockchain start-ups would kill for that amount of money.
The only question is if this is enough to develop the exchange to a working state.
I see. this is less than half the money they need at least. On the other hand they have already said the project will continue even if they don't reach the SC.
They also said the development is almost done, so I don't really know why they need $5 mil in softcap if the development is close to being completed.
For advertizing you cant have enough money, but its big amount, you are right.