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Are employees even able to sell on IPO day?

In a traditional IPO, there is generally a 90-180 day lockup period for existing shareholders (to prevent shares from flooding the market on day 1). This is one of the big benefits of a direct listing (see Spotify/Slack)...any shareholder can sell stock on day one.

> to prevent shares from flooding the market on day 1

These are common, but I don't think they apply to all share classes, so the big boys are free to get their money out.

usually it doesn't apply to the "Big" VCs and founders. So they are quietly able to get out before the stock crashes a couple months later.

Could you share some examples of that occurring? To my knowledge, a lockup period is almost always a standard requirement from the underwriter (on any larger IPO), and in some states is even required as part of their Blue Sky Laws.

If a founder/VC wants to get out before the IPO, they usually just do so on the secondary market. Example: Benchmark cashing out a portion of their Uber stake to SoftBank pre-IPO.

https://www.sec.gov/fast-answers/answerslockuphtm.html

I think Ubers lockup expires November 6th. should be an interesting day to watch that stock.

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