Cliff Vesting

Noun · Startup & VC

Definitions

  1. A vesting structure where no equity vests until an initial threshold date, after which a block vests at once and the rest continues on the normal schedule. One-year cliffs are common in startup employee equity.

    In plain English: An equity schedule where nothing vests at first, then a chunk vests all at once after a set period.

    Example: "She left before the cliff vesting date, so none of the options had vested."

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