Venture Financing
Vesting / Cliff
Earning your equity over time, with a one-year cliff
What it is
Vesting is the schedule by which founders or employees earn their shares or options over time, rather than owning them all on day one. A standard schedule is four years with a one-year "cliff," meaning you earn nothing until you have stayed a full year, then 25% vests at once and the rest accrues monthly. Leave early and you forfeit the unvested portion.