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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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Planning for the Future: Your Exit Strategy

Up and Running

For smaller companies that have already begun expanding—like restaurants that have franchised—an IPO may be a good way for the owner to recoup money spent, though it is worth noting that he or she may not be allowed to sell stock until the lock-up period has passed.

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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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Difference Between ICO, IEO and STO

Kodorra

Securities and Exchange Commission (SEC) requires a lock-up period in their Regulation S where investors are unable to cash out their investment for up to one year. Because regulation and governance are tighter around securities, so is liquidity. Some regulators, such as U.S

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The 2021 Israeli Unicorn Map

VC Cafe

The impact of these new unicorns and especially th e graduated unicorns which provide liquidity to both investors and employees (after lock up periods), have meant that potentially thousands of employees have become millionaires. High Tech represents 15% of Israel’s GDP (Source: Israel’s Innovation Authority ).

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

The Equity Kicker

Once these businesses and others come out of their lock-up periods many of their option holders will cash in, more people will know somebody whose options have worked for them, and startup employees will place more value on those options.

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Trimming The Hedges, Planning For A Rainy Day

Haystack

One could argue there are 101 reasons for all of this sentiment, and they’d be right.