Startup Investing

Founder Lock-In

Definition

What is Founder Lock-In?

A restriction limiting a founder's ability to sell shares for a period.

Example in practice

The founder cannot sell most shares before the investor exits.

Keep learning

A preliminary document outlining the main commercial terms of a proposed investment.

A company's agreed value immediately before a new investment.

A company's value immediately after adding new investment capital.

The rate at which a company spends cash, commonly measured monthly.

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