Fundraising
Vesting
Vesting is the process by which a person earns full ownership of equity over time or on meeting conditions. Founder and employee equity typically vests over four years with a one-year cliff, meaning nothing vests until twelve months of service are completed.
In plain terms: Earning your shares gradually instead of owning them all on day one.
Why it matters
Protects the remaining founders when someone leaves early, and investors expect it. Founders sometimes resist vesting their own shares and then discover why it exists when a co-founder departs after four months holding half the company.
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