Equity6 min read

Equity and vesting explained

Cliff, four-year vesting, good and bad leavers: what the terms mean and why every co-founder team needs them.

Equity is ownership of the company. Vesting means you earn that ownership over time by staying and working, instead of getting all of it on day one. It protects the founders who stay from the ones who leave early.

The standard setup

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General information, not legal, tax or investment advice.