Am I reading this correctly that the team is now just Jens Peterssen and the whole Menze family has bailed?

If the project required a certain amount of money you should have set a minimum cap. You did not reach your imaginary minimum cap, which means a) people did not believe in your project and b) most of the team cannot be paid. Investors did not pay for a one man show.

IMHO this project is dead and buried and investors should be refunded.