From Who Will Be Hurt Most When The Tech Bubble Bursts? Not VCs, I learnt the concept of liquidation preference.
Basically, liquidation preference ensures the investment is valued over common stock and will be returned first in the case of bankruptcy and other cases. In the case of a successful exit (being acquired, IPO-ed, etc), it may be returned twice or less depending on the category of the liquidation preference. So a tech bubble affects common stock holders more than investors. If you get recruited by a company that does not end well, it harms you more than the investors.