Founder vesting
calculator.
Vesting means founders earn their shares over time, so a co-founder who leaves early does not keep a full stake. Enter the equity, the schedule and how long someone has worked to see what they keep and what comes back to the company.
What would a founder keep if they left?
Defaults to the standard four years with a one-year cliff, vesting monthly. Illustrative only.
Agree vesting in your founders’ agreement before you raise. Read how to split equity and set up vesting.
Four years,
one-year cliff.
This is the most common founder schedule worldwide, and investors usually expect it before they invest.
- Months 1 to 12: nothing vests. If a founder leaves before the cliff, the company can buy back all of their shares.
- Month 12: the cliff. A quarter of the grant vests at once.
- Months 13 to 48: monthly vesting. One forty-eighth of the grant vests each month.
- Month 48: fully vested. The founder owns their full stake, whatever happens next.
| Months worked | 40% founder keeps | Returns to the company |
|---|---|---|
| 6 | 0% | 40% |
| 12 | 10% | 30% |
| 18 | 15% | 25% |
| 24 | 20% | 20% |
| 36 | 30% | 10% |
| 48 | 40% | 0% |
Four-year schedule, one-year cliff, monthly vesting after the cliff.
Questions about
vesting.
General information, not legal advice. Have a lawyer review your founders’ agreement.
What is a standard vesting schedule for founders?
Four years with a one-year cliff. Nothing vests in the first twelve months, 25% vests at the one-year mark, and the rest vests monthly over the next three years.
What is a vesting cliff?
A minimum period before any shares vest, usually twelve months. If a founder leaves before the cliff, they keep nothing and the company can buy back their shares.
What happens to unvested shares when a co-founder leaves?
The company, or the other founders, can buy them back, usually at the original nominal price. That lets you give the equity to the person who takes over the role.
Do founders need vesting if they own the company?
Yes. Vesting protects the founders who stay from a co-founder who leaves early with a large stake, and most investors ask for it before they invest.
How does founder vesting work in Kenya and Nigeria?
It is usually written into the shareholders’ agreement as a right for the company or the other founders to buy back unvested shares, often called reverse vesting. Ask a local lawyer to set it up for your company.
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