It seems like you would be opening yourself up to lawsuits if you take this course of action and are successful. Not that I might not do it if I believed in something, but I'd want to be very careful.

If you're out of money it might be hard to pull this off as I've heard seeking funding is a full time job (or two, as your cofounders have shown) so the product has to be mostly good to go (for at least the time being) if that's going to work.

Using the product you already built with company funds is almost definitely off limits (IANL), so I'm not quite sure how that strategy could be feasible.