All the right things have been said in other comments already, however I'd like to point out that the outcome for Peter, the angel investor is a little unclear

All the right things have been said in other comments already, however I'd like to point out that the outcome for Peter, the angel investor is a little unclear from the article. It says: > Peter, while sad about the outcome, has developed a huge syndication following on AngelList and has recently benefitted from an early acquisition that netted him $3 million on a $250k investment. Can’t win them all, but he’s at peace. Assuming the investment was in convertible notes, surely the debt would have converted into shares at the same terms that the VC investment happened, including the liquidation preference. So if the VC gets to take chips off the table so would Peter, I assume?