This. Successful business people know that the number one issue is under-capitalization. They would have modeled best, most-likely and worst case scenarios and given all the issues, gone with worst case. They would have applied the rule of startups...figure how much $ you need, add 10%, then double it. They would have looked at purchase options...from buying the business outright to only procuring certain assets. They would have known the importance of developing a comprehensive plan, including a communication plan.

Good on them for putting any $ into something that was clearly a dumpster fire and good on them for making some people whole but one can't help but wonder about their business acumen.