I don't think that's the right way to look at it. The VC money you spent is a sunk cost; it's part of the past and the only question is how to make the most of its assets. That VCs are no longer interested in the business makes sense, but it doesn't follow that it needs to be shut down, eliminating its remaining value. They could write it down as a loss, stop thinking about it, and let the founders run it at zero cost to themselves. So I don't the bar you're being held to is a real thing.
What I do think is real is that a bunch of equity is missing, and for the company's cashflow, that might make it non-viable. You may have also built in a way that makes its operating costs too high to turn it into a lifestyle business. Or perhaps you just don't want a lifestyle business. All of those (and others I haven't even thought of, I'm sure) are great reasons to call it quits. I'm just objecting to the "bar" part of it.