Nobody liked your project idea, so we are not going to give you any funding. The first version is a weaker statement, emphasizing facts not directly relevant to its point. The second version provides the information in a simple and direct manner. But you don’t need to be an expert on style to know that the first phrasing is diplomatic and respectful (even though it’s less concise) as compared with the second version, which is unnecessarily harsh and likely to provoke a negative reaction.
Not only does this mean that you should focus on neutrality in your letter’s appearance (avoiding the use of colorful paper, brash logo designs, and artistic fonts), but it also means that you should employ a very low_key, unnuanced, and professional closing phrase. The best_case scenario is that the hiring manager, colleague, or connection won't even notice the closing.