Before we go absolutely HAM on IPO lockups, budget (lol) some time for this week’s Run the Numbers Pod with Front’s CFO, Jenny Decker. We discuss Playing Eagle vs Mouse, men taking paternity leave, and RACI / DACI decision making frameworks.
HAHA, IT’S A CARROT!
Congrats to Instacart and Klaviyo on their recent IPOs. Tenured employees are about to go out and cop those jet-skis they’ve always wanted.
Well… in approx 180 days, lol.
Series A Product Marketing Manager at Klaviyo
You see, there’s this thing called a lockup period. It bars employees from selling immediately. Why do this?
Protect the stock price: If everyone sells, it will flood the market and the stock price will tank.
Employee Retention: An IPO is a milestone, not the end of the journey. You don’t want a mass exodus of key employees.
Like most things in this opaque IPO process, there’s an art and a science to setting lock up periods.
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