Well there are a few questions here. First of all, how do you know the VC didn't just reject you because someone had brought him the idea first?

I have never heard of VCs taking an idea and convincing some programmers to develop it.

Perhaps you should speak to him about it. If they are failing, send a reasonably nice letter asking to work on the project as there are many similarities and you think you could really benefit the project. You would have to swallow your pride, but you might get funding...