The company went on an irresponsible spending spree after the last fundraising round in 2022 where the company was significantly overvalued. The company is now living paycheck to paycheck as it struggles to raise more money to keep the lights on. With no product or revenue, investors are understandably worried about sinking in any more money.
After the first flight of Terran 1, the company completely lost its way. It went from an innovative 3D printing company launching Terran-1 in record time, to a mediocre performance Terran-R that has no realistic launch date, or feasible way to ship from California to Florida. Even if Relativity could get their next rocket to the launch pad, it will hit a brick wall when Starship starts flying and Falcon 9 completely gobbles up any remaining launch customers.
Executive leadership has no clue how to navigate out of this tailspin, and have been so far removed from the day to day operations that they wouldn't even know where to start.
With no more innovation to their manufacturing after 3D printing was proven ineffective for the fuselage, there isn't a compelling reason to bet on Relativity Space. Most of the good engineers know this and have left the company.