This is why Gowalla's investors are diversified across multiple startups. For them this is just one setback in a much larger game. The people getting screwed

This is why Gowalla's investors are diversified across multiple startups. For them this is just one setback in a much larger game. The people getting screwed here are Gowalla's employees, who put years of effort into a single project and whose options are now worth zero.