I read it as inviting a business guy into your idea;
"If we choose to work with you we'll create a new company (probably called Bitsy Ltd)"
I hope you guys do well, and since you landed on the first page of HN you may get that guy/girl. They will be quite young I imagine, but it doesn't mean they won't be good.
I am a little sceptical, I don't see enough traction to attract the type of person you are asking for. 1000+ users is not enough to get an entrepreneur with real experience. I would focus more on the skills your team has.........oh, just checked that, you mean to say you have a team of 10 geeks with no business guy, this is ridiculous.
At the end of the day you are not putting your team into the deal, you are just putting an idea that didn't take off and if the new guys can't make it work then the new company dies and the team goes onto the next project.
Invite a business guy into your team, a good business guy is good at business and will see through this type of offer in a flash.
That's unfortunate but this is business, most successful people go through this many times.
Best thing to do now is man-up, spend your last dollars taking your guys out for a drink and try and leave it with relationships in tact.
Best of luck on re-entering the workforce and don't lose hope. You may find an opportunity you can get started in your spare hours without all the extra sparkly bits that brought you down this time.
I was on the other end of of one of these campaigns. It was extremely distressing, having fictional articles pop up every other day. The dispute was over a post I made outing a scammer. In the end (2 months and 50 posts) I folded and removed the post.
After I made peace with the scammers I was then contacted by a reputation management company that tried to extort more cash from me and started posting more articles. Thankfully it ended when I didn't respond.
It's really the lowest level of entrepreneurialism and one that should be shunned. When I have some spare money I will tell the internet that i'm an astronaut just to prove a point.
I hope you guys do well, and since you landed on the first page of HN you may get that guy/girl. They will be quite young I imagine, but it doesn't mean they won't be good.
Best of luck.