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2021 was a record breaking year for Israeli startups. What now?

VC Cafe

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. Global tech correction.

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409A Valuations

Venture Chronicles

We are in a really interesting period where tech IPOs are few and far between and the effect has been for a secondary market to develop for employees of high growth companies to tap into in order to realize actual value from their stock options. It is called the 409A Valuation requirement from the IRS.