Founders’ Lockup Clause Samples

A Founders’ Lockup clause restricts company founders from selling or transferring their shares for a specified period following a financing event or the company’s public offering. Typically, this lockup period ranges from several months to a few years, during which founders must retain their equity and cannot cash out or dilute their ownership. The primary purpose of this clause is to reassure investors and the market that founders remain committed to the company’s long-term success, thereby preventing sudden share sales that could negatively impact share price or investor confidence.