Cloudflare(NET) was ~$18 at IPO. It was ~$19 at lockup expiration 180 days later(versus nasdaq being a few percent down). If you bought at IPO you'd be up 734% but at lockup you'd be up only 688%.
Employees who own shares before the IPO are often prevented from selling them right as the company IPO, that's the lockup period. After this period (often 6 months), they are allowed to sold their shares. The reasoning of GP is that a lot of shares will be sold right after the lockup expires (because employees want to cash-in/diversify), artificially depressing the price.
Yes. However, a significant portion of Tech IPOs have a modified lockup which allows selling of a portion of lockup shares based on some event triggers (earnings release + stock performing +x% from issuance price). Lockup agreements are negotiable and can vary from one IPO to another.
Its usually 6 months. But there may be an alternative 'limited' lock up triggered earlier if the stock price is above a certain level continuously for a certain period of time.
"We and all of our directors, officers, and holders of approximately % of our outstanding stock and equity securities are subject to lock-up agreements with the underwriters that restrict their ability to transfer such shares of stock and such securities, including any hedging transactions, during the period ending on the date that is 180 days after the date of this prospectus, as further described in the section titled “Shares Eligible for Future Sale.”