What most likely happened was that investors together owned closer to 80% of the business and possibly had liquidation overhangs and some sort of anti-dilution

What most likely happened was that investors together owned closer to 80% of the business and possibly had liquidation overhangs and some sort of anti-dilution that ended up in a similar situation. That's what liquidation preferences and overhangs do for companies that raise 100m+, they eat in the common.