Cliff

Tanım

A cliff is the initial period of a vesting schedule during which no equity vests; if the person leaves before the cliff, they keep nothing. The standard is one year.

Yatırım alma sürecinde nasıl karşımıza çıkar

The classic startup grant is four-year vesting with a one-year cliff: 25 percent vests at month 12, then monthly thereafter.

Sıkça sorulan sorular

Why do cliffs exist?

They protect the company from giving permanent equity to people who leave quickly, keeping the cap table clean of short tenures.

Do founders have cliffs too?

Investors expect founder vesting with a cliff, which also protects co-founders from each other if someone exits early.

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