Pretty standard acquisition story. Shareholders with preferred shares (VCs) got paid first. By the time they were paid there was nothing left. It just means the company was sold for too little for the employees to benefit.
I got $130k, and their options were worthless.
Luckily the acquirer offered retention bonuses that helped dull the pain, but of course those are taxed at regular income and not long term capital gains.
Oh, and like a previous comment mentioned: the VCs have preferred stock so they get their investment back 100% before any common stock sees a penny. If employees had the same stock as VCs, I estimate I would have walked away with about $400k.