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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. It was May.

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Share options are key to Valley culture; the UK is getting close, but not there yet

The Equity Kicker

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.

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The Corrosive Downside of Acquihires

Both Sides of the Table

The Aqui-hire Business. And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. .” Most founders stick around for their lock-up period (1-2 years) before going on to found their next company.

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Trimming The Hedges, Planning For A Rainy Day

Haystack

There are many little signals to stitch together.

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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.

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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.