If it is internally funded, then it is internally funded. You don't get revenue until you start selling, and that means you've finished at least some phase of development and have a product folks will buy.
So, given the blog post that Ramius pointed out, the most likely story seems to me to be, "We didn't get to a sell-able point before the holidays. We'd run through our funding, and WotC wasn't willing to provide further funding. So, the agreement was terminated. Now, if we wish to continue, and get some return on the money and effort we already sank in, we need a kickstarter."
It wouldn't be the first time a blown deadline made business agreements go south.