The schedule over which founders and employees earn the right to their equity — typically 4 years with a 1-year cliff. Plain-language explainer with examples.
The schedule over which founders and employees earn the right to their equity — typically 4 years with a 1-year cliff.
Standard vesting is 4 years with a 1-year cliff: nothing vests for 12 months, then 25% vests all at once, then monthly for the remaining 3 years. Leaving before the cliff means walking away with zero shares.
Founder vesting is required by essentially every institutional investor. If you and your co-founder don't have a vesting schedule now, add one before you raise — no round closes without it.
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