It has to do with dilution and something called liquidity preference. If an investor puts in $5 million and has a 2x liquidity preference they get out $10 milli

It has to do with dilution and something called liquidity preference. If an investor puts in $5 million and has a 2x liquidity preference they get out $10 million before anyone else. That happens to every investor on down, whatever is left is then split among the common stock/options holders. There was likely nothing left or what was left was less than your option strike price.