I had the same thought, especially after reading this part: The management team was eager to sell because much bigger players were moving into their space and

I had the same thought, especially after reading this part: The management team was eager to sell because much bigger players were moving into their space and they had concluded that it would be much harder to win new contracts in the future. They also believed that because the big players were getting excited about their space, they would probably get the best valuation now. I know VCs talk about the 3 buckets (big winners, getting investment back, belly-up) but it seems crazy they'd turn this down that just happened to fall somewhere in between. It's possible (probable!) that we don't have all the information available to them at the time. Maybe they foresaw some opportunity for it turning into a big winner.