Founder Vesting is the process by which a founder earns their equity over time, protecting the company’s long-term interests by encouraging founders to remain committed.

Founder vesting is common in startups. It ensures founders work towards the company`s success over several years before getting full ownership.

How does startup equity and vesting work? In startups, founders get their shares gradually over time. This process is called vesting. It ties their rewards to their commitment and time spent on the company`s growth.

Why is founder vesting important? Founder vesting keeps founders motivated to stay and grow the company. It also makes sure they earn their shares through hard work over time.

What is the vesting cliff for founders? A vesting cliff is a period founders must wait before their shares start vesting. Usually, it`s one year. It means they get no equity if they leave before this period.

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Founder vesting helps startups by keeping founders focused on long-term goals. It also protects the company if a founder leaves early.

Founder vesting is super important in startups. It links founders` rewards to their long-term work and commitment to the company`s success.