Both Sides of the Table

JANUARY 5, 2010

The problem was that he was still working out the lock-up period in his big company. If this idea was so big then why would they risk not being first to market, not building defensible IP for the sake of a few hundred thousand dollars extra in lock-up money at a big company? I finally called bullshit.

Entrepreneur 293

Entrepreneur CTO Hire South America Salary 293

VC Cafe

JANUARY 14, 2022

Both employees and investors typically have a 6 month lock up period (exceptions apply of course) so this can have devastating effects on liquidity and retruns. Given that some of these new stocks have low trading volume, in practice the lock up period can be longer.

Israel 158

Israel Technical Review Lock-up Period South Korea 158

Up and Running

NOVEMBER 12, 2014

For smaller companies that have already begun expanding—like restaurants that have franchised—an IPO may be a good way for the owner to recoup money spent, though it is worth noting that he or she may not be allowed to sell stock until the lock-up period has passed.

Exit Strategy 117

Exit Strategy Lock-up Period Merger IPO 117

Both Sides of the Table

MAY 13, 2013

Most founders stick around for their lock-up period (1-2 years) before going on to found their next company. .” Mark – doesn’t the acquiring company mostly care about the super innovative founders? Those 1-3 you’re talking about? If they do then they’re naive. And most buyers aren’t.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Kodorra

JANUARY 4, 2019

Securities and Exchange Commission (SEC) requires a lock-up period in their Regulation S where investors are unable to cash out their investment for up to one year. Because regulation and governance are tighter around securities, so is liquidity. Some regulators, such as U.S

Securities and Exchange Commission 40

Securities and Exchange Commission Technical Review Lock-up Period Accredited Investor 40

The Equity Kicker

DECEMBER 18, 2014

Once these businesses and others come out of their lock-up periods many of their option holders will cash in, more people will know somebody whose options have worked for them, and startup employees will place more value on those options.

Lock-up Period 125

Lock-up Period Angel Investor IPO Salary 125

VC Cafe

SEPTEMBER 24, 2021

The impact of these new unicorns and especially th e graduated unicorns which provide liquidity to both investors and employees (after lock up periods), have meant that potentially thousands of employees have become millionaires. High Tech represents 15% of Israel’s GDP (Source: Israel’s Innovation Authority ).

Israel 168

Israel Lock-up Period Merger IPO 168