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.
Remember, you're hoping the person who receives your letter has no memory of your closing at all. The last thing you want is a hiring manager going into an HR meeting with your cover letter in hand, asking the team if they want to meet with "Mr. Kindest Personal Regards."