Equity basics: vesting, cliffs, acceleration, and exits
Equity basics: vesting, cliffs, acceleration, and exits As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you Advisor terms (0.5–2.0%): 4 (or 2) year vesting, optional cliff, full acceleration on exit Getting equity structures right When it comes to equity terms, there are only 3 things to understand: vesting, cliffs, and acceleration. For these examples, let’s say that I’ve got a co-founder and we’re split
