The Lockup Cliff How Private Company Shares Hit Public Markets

Lucas and Luna dive into the mechanics of IPO lockup expirations—those 90-to-180-day periods after a company goes public when insiders are barred from selling. They examine how the end of a lockup can flood the market with shares, using recent examples like Palantir (PLTR, up 1.1% in the last five days) and Airbnb (ABNB, up 1.2%). They explore why some companies see their stock drop after the lockup lifts, while others barely flinch. They also discuss secondary market sales that let early employees cash out before the lockup expires. Specific numbers: about 80% of tech IPOs see a price decline within a month of lockup expiration, and secondary market volumes have tripled since 2023. The episode ties this to the broader trend of direct listings and SPACs, where lockup rules differ. The conversation is grounded in current market data and recent headlines, including SpaceX's Starlink win and OpenRouter's valuation jump. #IPO #Lockup #SecondaryMarket #Palantir #Airbnb #PublicMarkets #TechIPO #DirectListing #SPAC #InsiderSelling #SharePrice #CapitalMarkets #FexingoBusiness #BusinessPodcast #Technology #Finance #StockMarket #Startup Keep every episode free: buymeacoffee.com/fexingo