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. This is primarily the case for the US.

Technical Review 158

Technical Review Lock-up Period South Korea 158

Venture Chronicles

OCTOBER 31, 2010

Companies are required to price their employee stock options close to the “market valuation&#. The secondary market that has emerged in our current period is simply a response to market conditions that frustrate liquidity. It is called the 409A Valuation requirement from the IRS.

Valuation 42

Valuation Stock Options Lock-up Period IPO 42

Professor VC

JANUARY 20, 2009

From first hand experience, we certainly felt the market conditions and the funding process was much more difficult than anticipated. Evaluate Business and Financing Needs - We initially went out seeking $10 million in financing, but listened to the prospective investors and watched the market. We drew $1.5 Same principle here.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28