Understanding Startup Equity Cliffs and Vesting
Posted on Thu 11 June 2026 in Startup • Tagged with equity, vesting, stock-options, startups, founders
A startup employee equity cliff period is the minimum amount of time an employee must stay with the company before earning any ownership rights to their stock options or equity grants.
Typical Structure
4-Year Vesting with 1-Year Cliff The most common arrangement: equity vests over four years, with nothing earned …
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