Because the investors gave money to StaffJoy, not the idea one founder had when it because apparent SJ wasn't working out. And it sounds like either the other cofounder(s) either aren't interested in the new idea or aren't welcome to the new team as he says there will be a new founding team. That makes it very complicated especially if it's the same corporate structure moving forward with a different idea, you don't want un-involved prior cofounders sitting on equity.
So they're giving the money back, wiping out the corporate structure and starting fresh with one of the cofounders and what sounds like some but not all of the investors.
So they're giving the money back, wiping out the corporate structure and starting fresh with one of the cofounders and what sounds like some but not all of the investors.