Point of no return is when the VCs wire money to you.

These people tend to exaggerate their funding prospective, saying things like "they backed out". Ultimately VCs don't owe anybody money and startups are not entitled with funding.

Investing is just like any other purchase, and as a VC if you believe that a company is not worthwhile to invest then you should be ready to say no no matter what stage the conversation is in.

Ironically the fact that the company couldn't raise another round / continue without finding is a sign that VCs did make a right choice.