Fundraising

Vesting

Earning your shares or options gradually over time, so you have to stay to fully own them. A "cliff" means you earn nothing until a first milestone (often one year).

Example

A 4-year vest with a 1-year cliff: you get 25% after year one, then the rest monthly.

Related terms

ESOP

A pool of shares set aside to give employees ownership in the company, usually earned over time. A key way startups attract talent without huge salaries.

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