What is Vesting?
The process of earning equity over time. Founders and employees typically have a 4-year vesting schedule with a 1-year cliff, meaning they earn their shares incrementally and lose unvested shares if they leave.
Understanding Vesting is critical for startup founders navigating the venture capital ecosystem. Whether you are actively fundraising or just planning your capital strategy, grasping these terms helps you negotiate better deals and find the right investment partners.
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