Founder Vesting Schedules

Founders do not get all their equity on day one. Investors require founders to "vest" their shares over time to ensure they stick around to build the company.

The Standard Schedule

The industry standard is 4 years with a 1-year cliff. This means:

• If you leave before 1 year, you walk away with 0%.
• On your 1-year anniversary (the cliff), 25% of your shares instantly vest.
• For the next 36 months, the remaining 75% vest in equal monthly installments (1/48th per month).

Acceleration Triggers

What happens if the company is sold before you finish vesting? You negotiate acceleration in the term sheet.

• Single Trigger Acceleration: Your unvested shares immediately vest if the company is acquired. (Investors hate this, it is rare).
• Double Trigger Acceleration: Your shares vest IF the company is acquired AND you are fired by the acquirer without cause. This is standard and fair.