First, investors don't get "paid back" when a business fails. I didn't take on debt from the investors with an interest rate and repayment terms.
You imply that this business failed. Yet, we have NO records that this business actually conducted business (no bills, receipts, invoices, etc.).
Ostensibly, the contract is equity. However, WITHOUT business records this may as well have been a
personal loan. THIS would make interesting case law.