Funding
Vesting
Definition
The process by which a co-founder or employee earns their equity over time. Standard vesting for founders: 25% vests after year 1 (the cliff), then 1/48th vests each month for the next 3 years.
Why founders care
Always have vesting agreements with co-founders. If a co-founder leaves after 6 months without vesting, they walk away with nothing — protecting the company and other founders.
Related terms
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