This even washes out earlier investors. I've had situations where I invested and the company got acquired, but there wasn't enough money to get back to my prefe

This even washes out earlier investors. I've had situations where I invested and the company got acquired, but there wasn't enough money to get back to my preference shares. Obviously common was wiped out. In particular, when companies seem like they might go bust new money insists on healthy (2X/3X) liq prefs. As in many situations, the golden rule applies. He who has the gold makes the rules!