---
title: Lock-Up - Definition & Examples | RGM® Glossary
url: https://realgrowthmatters.com/glossary/lock-up/
updated: 2026-06-10
source_html: https://realgrowthmatters.com/glossary/lock-up/
---

Growth Glossary — Definition

SHT LOCK-UP

# Lock-Up

Restriction on selling shares for period. A working definition from the RGM marketing glossary.

Restriction on selling shares for period.

Term
:   Lock-Up

Field
:   Venture Capital

Category
:   Capital & Investing

## A working definition

Start here.Lock-Up is a capital concept your team should define once. A loose definition misaligns budgets and reporting.

Restriction on selling shares for period.

As a capital & investing term, Lock-Up means a capital concept. Settle what it covers before the planning starts.

## How it works

Pick one definition.Lock-Up is no fixed dial. How it behaves depends on your audience, your channel mix, and the strategy around it.

Think of Lock-Up as context-bound. A small shop reads it simply; an enterprise reads it with more nuance. That is normal -- Lock-Up is shaped by audience and channel mix. Read Lock-Up without care and the plan wobbles; be precise and the read holds.

Keep the order simple: define Lock-Up for your context, then decide how to act. Reverse it and the budget chases a number nobody agreed on. One idea, plainly put.

## When to reach for it

Pick one definition.Lock-Up earns attention at three moments: setting budget, choosing a metric, comparing options. Away from those, it waits.

Lock-Up matters at the point of a decision. In capital & investing, three moments come up again and again. Outside them, Lock-Up is reference material.

1. **Setting budget.** Lock-Up helps decide which channel gets the next dollar.
2. **Choosing a metric.** Lock-Up shows whether the report will hold up.
3. **Comparing options.** Lock-Up normalizes a side-by-side that hides real gaps.

## An example with real numbers

Worth a slow read.To make Lock-Up concrete, the case below uses a Series B marketplace and figures from public reporting plus RGM analysis.

Look at a Series B marketplace. In a CAC-to-LTV review, Lock-Up drove the decision rather than sitting in a footnote. A baseline came first, then a single agreed meaning of Lock-Up, then the read: runway extended after re-pricing a 3:1 segment.

Example walk-through for Lock-Up -- figures illustrative, RGM analysis

| Stage | The step taken | The reason |
| Baseline | Logged where Lock-Up stood before the test. | A fixed point of truth. |
| Define | Fixed one meaning of Lock-Up for the test. | A shared definition up front. |
| Act | A CAC-to-LTV review — one variable. | Only one thing moved. |
| Result | Runway extended after re-pricing a 3:1 segment | A decision the data earned. |

Treat the Lock-Up figures as illustrative, labeled RGM analysis. Reuse the sequence, not the digits.

## Mistakes worth avoiding

Worth a slow read.Most mistakes with Lock-Up share a root: the term gets reported as if it were exact when it is not.

- **One blanket rule.** Applying Lock-Up the same way everywhere. Split it by audience, channel, and business model.
- **No context.** Reporting Lock-Up with no baseline. A bare number cannot be judged.
- **Vanity focus.** Gaming Lock-Up instead of the result. Tie it to business value.
- **Bad compares.** Benchmarking Lock-Up with no adjustment. Account for the model differences first.

## Quick answers

How is Lock-Up defined?

Restriction on selling shares for period. Settle what Lock-Up covers first; the strategy follows from there.

Why does Lock-Up matter?

Lock-Up shows up in budget reviews and channel reporting. Use it loosely and teams pull apart; use it precisely and the numbers line up.

How is Lock-Up used in practice?

Lock-Up supports a real choice: where money goes, what gets measured, which option wins. The a Series B marketplace case traces it.

Where do teams slip up on Lock-Up?

Using Lock-Up flat across every segment and showing it without context. Both make a guess look exact.

Where can I learn more about Lock-Up?

Start with the related terms below, then read the guide on CAC payback periods, plus performance marketing fundamentals.

How is Lock-Up defined?
:   Restriction on selling shares for period. Settle what Lock-Up covers first; the strategy follows from there.

Why does Lock-Up matter?
:   Lock-Up shows up in budget reviews and channel reporting. Use it loosely and teams pull apart; use it precisely and the numbers line up.

How is Lock-Up used in practice?
:   Lock-Up supports a real choice: where money goes, what gets measured, which option wins. The a Series B marketplace case traces it.

### Related guides

### Related terms