Interesting idea moving to another country; since they were looking to raise funds it's probably tough to convince the same investors to invest in the new foreign startup.
Modern investors are a lot more sophisticated than they were a few years ago in regards to where a startup is incorporated and where it operates from. Angel investing and earlier rounds take place anywhere, it is only when larger funds get involved do VCs only tend to invest within a few zipcodes of their own location.
Fred Wilson has blogged about this extensively - he considers his fund to be global, as do many other angel and super-seed investors.
