They also have no obligation to deliver a product. If they fail to deliver a product after 5 years, they must return all of the money to the original investors.

They could theoretically just earn interest on $186 million for 5 years and then return the money and say "oops, we missed our target". The terms of the SAFT allow it.

Wow... I just had to get it confirmed, and I still can’t believe it. Did they raise this without giving up any equity?

Is that 186 million in ETH or fiat?