I don't think you have any clue what really went wrong. This was doomed the moment you decided to switch to Ruby on Rails. Yeah, I remember that thing you (or maybe your co-founder) wrote about that on here. When I read that idiocy, I instantly knew that this company would fold. Any startup with a founder so completely clueless as to make that type of decision is doomed to failure. And this has nothing to do with Rails or Django or whatever. It has everything to do with your line of reasoning for making that switch. That type of thinking is indicative of a far greater a problem. It shows you lack the basic ability to look at situations and interpret them correctly.