Fundraising
Cliff
A cliff is a minimum period that must elapse before any equity vests. A standard one-year cliff means a holder who leaves before twelve months receives nothing, while completing the cliff vests the first portion in a single tranche.
In plain terms: Leave before the first year is up and you get nothing.
Why it matters
The mechanism that makes early departures clean. It is also why the twelve-month mark is a meaningful conversation point with anyone whose fit is uncertain.
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