They're getting paid in extremely overvalued stock, so maybe it balances out.

This is not really a diss on SpaceX either because a lot of IPOs go through an immediate pop and then 1-2 years of doldrums as lockouts expire and promises aren't quite delivered.

Nobody knows what 60 billion in SpaceX stock today will be worth when Cursor insiders finally get to sell (at least a year from now, after other SpaceX insiders have started selling).

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bix6 8 hours ago | parent | next [-]

Source on the lockup for Cursor insiders?

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cik 7 hours ago | parent | next [-]

Generally this is how liquidity works. Their employees will have a six or twelve month lock up (six being most common).

Investors in certrtain rounds (or sizes) tend to have no lockup, whereas later stages have a six month. Alternatively, I've reviewed agreements where the lockup is based on minimum market cap, but I've only seen that a couple of times.

	▲	bix6 6 hours ago \| parent [-]
		Ok everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.

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bilekas 8 hours ago | parent | prev | next [-]

This is just a general practice that always happens when paying in stock. It's to prevent a massive dump the next day which would tank the share price 'artificially'. Again, rich people's rules.

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bix6 6 hours ago | parent [-]

Ok everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.

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bilekas 5 hours ago | parent | next [-]

https://www.sec.gov/reports/rule-144-selling-restricted-cont...

> Holding Period. Before you may sell any restricted securities in the marketplace, you must hold them for a certain period of time. If the company that issued the securities is a “reporting company” in that it is subject to the reporting requirements of the Securities Exchange Act of 1934, then you must hold the securities for at least six months

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bix6 5 hours ago | parent | next [-]

Are the securities restricted though? I don’t think these would be?

	▲	bilekas 5 hours ago \| parent [-]
		Almost guaranteed to be. The only other way would be to have issued them during the transaction with the Sec. There was no mention of that. 60billion of issued shares would have been mentioned. It's non trivial amount.

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kyleee 5 hours ago | parent | prev [-]

What’s the lockup period in this case?

	▲	bilekas 5 hours ago \| parent [-]
		Um, I honestly don't know for sure, if I'm not mistaken SpaceX has some weird staggered release schedule for employees and early investors, I guess based on their stock dates.

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bilekas 5 hours ago | parent | prev [-]

> SpaceX has a 7 day lockup for some people which is abnormal

You might be referring to staff members who have shares ? Their shares are not restricted securities as far as I know, but their internal company policy might affect those, but I'm not 100% certain on that.

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bix6 5 hours ago | parent [-]

There are many tranches here. Some friends and family got to buy day one IPO with no restrictions. Then some employees get a rolling release starting June 30.

	▲	bilekas 4 hours ago \| parent [-]
		That's interesting actually, and good to hear. I fully believe those employees deserve their full share.

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UqWBcuFx6NV4r 8 hours ago | parent | prev [-]

It can be inferred because it’s how things tend to work.

	▲	bix6 6 hours ago \| parent [-]
		Ok everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.

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sigmoid10 8 hours ago | parent | prev [-]

Well, the people who bought the SpaceX IPO essentially footed the entire bill here. And they might still make money on it, depending on how the stock goes from here on. I don't see anyone who could lose here, even if the bubble bursts, apart from the Cursor people. And they are likely still going to make a huge amount of money.

	▲	bilekas 7 hours ago \| parent [-]
		> Well, the people who bought the SpaceX IPO essentially footed the entire bill here. It's hard to say that they footed the bill here, but they basically gave SpaceX a number to say "well our stock went IPO and it's at this price, so here's 60B at this price" A good tactic from SpaceX as after the inital surge of a big IPO, the stock price usually comes down and finds it's correct balance, which is usually always lower. So if they had of waited the 'cooling off' period of a year for example, and the stock price went down to it's 'correct' valuation, then they would have had to issue a higher number of stocks.. At least that's my thinking, but I'm terrible with money.