The Equity Kicker
DECEMBER 18, 2014
Here in the UK the ecosystem is young and hence not yet so well developed. However, my experience across over 100 portfolio companies and my colleagues experience in hiring getting on for 1,000 people is that employees often don’t understand or value those options very highly.
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.
Venture Chronicles
OCTOBER 31, 2010
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.
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