Cliff

Noun · Startup & VC

Definitions

  1. The initial period (typically one year) in a vesting schedule during which no equity vests. After the cliff, a large chunk (usually 25%) vests at once, with the remainder vesting monthly or quarterly over the next three years. Protects companies from giving equity to short-tenure employees.

    In plain English: The waiting period before any of your company stock starts becoming yours, usually one year.

    Example: "I joined in January and my cliff is in January next year — if I leave before then, I walk away with zero shares."

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