Happens all the time and doesn't mean anyone got screwed. A couple years ago Lacework sold to Fortinet for around $200m. That sounds like a nice exit for everyone, right? But this was after they'd raised $1.8b at a valuation north of $8b, which, ouch. When founders and employees fail this completely, yeah, their equity is going to zero.

Of course there are other cases where people do get genuinely screwed. My point is only that the cash value of an exit, even when it's a big number like $350m, doesn't tell you much.