Even so, don't shed a tear for company insiders. While the sale price for their stock may be less than the highest levels, their cost per share may well be next to zero. A related issue is that big money from VCs may be significantly less than publicized. You have a site and a concept. But now the world has changed.
Eyeballs are out and profits are in.
Unless you can operate on a break-even basis the site cannot continue because there are no longer VCs willing to put up additional money. And it gets worse. If you have an IPO at whatever price, there is now only a short timeframe in which to show profits or lose investor interest. Alternatively, if there is no IPO, then the company may be sold or merged at firesale prices with another firm. The VCs, of course, will get most or all of the firm's value from the transaction.