If the number is right, $80m is not a ton of money for people who have already had big exits and took $20m in VC to start this company.

It could also be that the company is doing far worse than the business plan they originally showed out to the VCs : If there's lower growth rates, it's far better for everyone to notch up a quick 3x, rather than see the business dwindle into obscurity (the alternative case, in the minds of the VCs, if they're not going to 'go big').

FlickR only sold for $35 million. They took some funding prior to that too, so it wouldn't have been a huge payout for Fake.