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.
Quick Tip: Don't use your work email address for job searching. Use your personal email account, or set up a unique account to use just for your job hunt. Many free online email services exist, like Gmail and Yahoo mail, that you can use to set up a new email account exclusively for your job search.