Raising money
Vesting and cliff
Vesting is a schedule that lets a founder or employee earn their shares over time, so someone who leaves early keeps only the part they have already earned.
Also called vesting schedule, cliff
A cliff is the first stretch of the schedule, when nothing vests; leave before it ends and you leave with nothing from that grant. A common convention is four-year vesting with a one-year cliff. Investors often ask founders to put their own shares on vesting before a round.
This is not legal or tax advice, check with a lawyer or accountant.
When this shows up
Example, not a real founder: you split shares evenly with a cofounder and skip vesting because you trust each other. They leave a few months later to take a job. They still own half the company, and new investors see that as a problem.
What to do next
Write down each founder's shares and whether they vest. If they do not, ask a lawyer to set up a vesting agreement before your next investor conversation.