[tvladeck]

My guess (and this is just a guess, as I too can't read the article), is that the investment was a convertible note, and they actually paid back the debt instead of allowing it to convert into equity. But I am no expert and I don't know the facts — I was just wondering the same thing and this was the scenario I landed on as a plausible hypothesis.

[pflugerc]

Same guess. The investors either 1) got there principal back with no interest or 2) they still have there money in and it only get a value upon raising money or a sale. Likely it’s #1. Investors didn’t get screwed. They just didn’t win.