Yikes, sorry to hear this. In retrospect probably your best play was to work with the acquirer to negotiate a low figure 100% cash deal with good going forward comp and equity options for you and your operating team. With that in hand you then lay out a scenario to the VC where your team is exhausted and it is either this deal of the company falls apart. The hope is he grumbles all the way to his low cash takeout and you get another chance to prove your company out in a different equity structure. Good luck going forward!