4 Years with a One Year Cliff
4 Years with a One Year Cliff is the typical vesting schedule for startup founders’ stock.
Under a 4 years with a one year cliff schedule, founders vest shares over a four year period. Because of the one year cliff, the founders will not vest any shares until the first anniversary of the founders stock issuance. Upon the one-year anniversary, the founders will each vest 25% of their total shares. Vesting will usually occur monthly after the cliff.
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
