Basically,this team designed chips(110nm) for Avalon.
And for some unknown reason,they are looking for some new partner/investor.(40nm)
And,we don't know what happened inside Avalon.
To summarize what you and johnyj have said:
(1) Key members of the Avalon design team are now independent of Avalon;
(2) This new design team is proposing the development of a 40nm chip;
(3) The team is seeking investment - as in capital, as opposed to crowd source or pre-sales.
IS THIS CORRECT?Pretty much,as the author says.
And,he did not make this clear.But,almost there.