Investors are notoriously fickle - they scare easily. It's a survival instinct, and it keeps good firms alive. That said, this is certainly not a huge red flag - just a yellow one to proactively address. If the split wasn't publicized as one over fundamental inability to work together well, you should be able to get over that speed bump. Your Chair and advisors are probably right though - I'm answering based on limited data, and when you get enough people in the room saying something, it could be a sign that there's more to it than we may be seeing on the surface. Or it could be related to other motivations they have for keeping you out of the business. If you want to chat it through feel free to let me know.

Ryan