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Difference Between ICO, IEO and STO

Kodorra

The difficulty to set up an ICO project is rather low where companies with only an idea (inked on a whitepaper), a website and a star-studded team and advisors could raise hundreds of millions of dollars. Due to its simplicity to set up, the cost is obviously lower than IEO and STO. STO (Security Token Offering).

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

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.

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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

You may recall that back in the 1999-2001 timeframe it was popular practice for option holders who were in a lock-up period following an IPO to use a short process to borrow their company’s stock from other investors and sell it with the promise that they would forfeit their locked up stock when the lock up expired.