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
How This Looks in Practice
The founder cannot sell most shares before the investorA person or organisation that commits capital with the expectation of a financial return. exits.
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Related Terms
Startup Investing
Term Sheet
A preliminary document outlining the main commercial terms of a proposed investment.
Startup InvestingPre-Money Valuation
A company's agreed value immediately before a new investment.
Startup InvestingPost-Money Valuation
A company's value immediately after adding new investment capital.
Startup MetricsBurn Rate
The rate at which a company spends cash, commonly measured monthly.