SaaS & Startupintermediate
Vesting Cliff
Definition
A set period someone must stay with a company before they earn any of their promised shares or options.
Why it matters
A vesting cliff protects you from giving away equity to people who leave early, which is common for both founders and staff.
Example
An employee on a one-year cliff earns no shares until their first anniversary, then a chunk vests at once.
Related terms
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