Business Pitch Dictionary by pitch.dog
Term-sheet control & investor rights · Core

Lock-up

Also called: lockup period

ELI5

Owners agree not to sell shares for a while.

Used in conversation

“The IPO lock-up lasts 180 days.”

Definition

A restriction preventing security holders from selling for a defined period, often around an IPO.

Here “Lock-up” means: A restriction preventing security holders from selling for a defined period, often around an IPO.

Pitch context

You will see “Lock-up” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches term-sheet control & investor rights.

Why it matters: In term-sheet control & investor rights, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.