Common stock is at a mercy of preferred shares i.e. shares that VC's negotiated special terms for. I.e. VC investing is startup can ask for 10x times return on

Common stock is at a mercy of preferred shares i.e. shares that VC's negotiated special terms for. I.e. VC investing is startup can ask for 10x times return on his investment in case of acquisition. If agreed - he will tap in the jar first. Then founders. Then the rest (if anything left) will go to unaware employees. This "term sheet" is usually not disclosed to regular employees who are often too excited to work for puny salary and be given NNNNNNN likely worthless shares. Regardless - if you own shares and been told "sorry, no money left for you" - need to send lawyer-crafted letter to the owners.