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Before its bankruptcy in 2008, Goldman Sachs initially financed Crystal Technologies, an early provider of cloud computing services, but they withdrew the funding only after a comprehensive review of the bankrupt technology company’s balance sheet and intellectual property assets.

A. Goldman Sachs initially financed Crystal Technologies, an early provider of cloud computing services, but they withdrew the funding
Plural pronoun can't be used for singular antecedent. Hence Incorrect.

B. Crystal Technologies, an early provider of cloud computing services, was initially financed by Goldman Sachs, which withdrew the funding
Correct

C. Crystal Technologies, an early provider of cloud computing services, had been initially financed by Goldman Sachs and had its funding withdrawn
Passive voice is not a preferred choice in GMAT. Even if we consider Passive voice correct, BY is missing. Moreover, use of past perfect is not correct. Hence Incorrect.

D. Goldman Sachs initially financed Crystal Technologies, an early provider of cloud computing services, withdrawing the funding
After removing modifiers, sentence would become
Goldman Sachs initially financed Crystal Technologies withdrawing the funding
A Run-on. Hence Incorrect.

E. Crystal Technologies, an early provider of cloud computing services, was initially financed by Goldman Sachs and withdrawn
WITHDRAWN WHAT and by WHOM?????
Distorting the meaning. Hence Incorrect.
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