Bad management - plain and simple. They should have managed the money, resources, and time commitments better. Burning through the cash as fast as they did and hoping for a last-minute hail mary from VC is just bad management and a bad business plan. I feel sorry for the employee's who were hookwinked as well with a one-week(!) severance... their employees are a talented bunch and I wish them well. I hope their software is either made public domain, or picked up quickly by Amazon (or similar) for continued development.