Exactly. My heart isn't exactly breaking that VCs didn't make as much of a profit as they could have possibly made. I'm painfully uninterested in whether they can buy a yacht or a superyacht.
The employees getting a meaningful amount of money is exactly what we should all be caring about. Unless you're a VC, I guess.
Don't employees normally have a 6 month lockup after an IPO?
> Although the employees are making more than they ever dreamed of right now. For once a lockup period is working in their favor!
According to this quote Figma employees have a lockup too. I guess this worked out well for the employees who might have otherwise dumped 100% of their stock the instant the opening bell rang. But I assume most people wouldn't really do that because capital gains tax. They'd gradually liquidate and diversify.
For that matter, do VCs even sell all their stock on day 1? Companies issue new shares specifically for an IPO. Do we know the investors didn't wait for the "pop" and then sell?
.... but staff cashed in? Hmm.. looking for the downside.
Exactly. My heart isn't exactly breaking that VCs didn't make as much of a profit as they could have possibly made. I'm painfully uninterested in whether they can buy a yacht or a superyacht.
The employees getting a meaningful amount of money is exactly what we should all be caring about. Unless you're a VC, I guess.
I didn't post this for people to feel bad for the VCs. It's super funny the banks totally fucked them. These "sophisticated investors".
Don't employees normally have a 6 month lockup after an IPO?
> Although the employees are making more than they ever dreamed of right now. For once a lockup period is working in their favor!
According to this quote Figma employees have a lockup too. I guess this worked out well for the employees who might have otherwise dumped 100% of their stock the instant the opening bell rang. But I assume most people wouldn't really do that because capital gains tax. They'd gradually liquidate and diversify.
For that matter, do VCs even sell all their stock on day 1? Companies issue new shares specifically for an IPO. Do we know the investors didn't wait for the "pop" and then sell?
Yes, many just distribute the shares down to their LPs who then decide whether to sell or hold.
I would be surprised if that didn't happen in this case.