Glossary · Employee equity
Founder vesting
Founders earn their shares over time, like employees. It protects the team if a cofounder leaves early — their unvested shares can return to the company.
Related: Stock options · Cap table · Reverse vesting · Vesting acceleration
A bit more nuance▾
- Investors almost always expect founder vesting before funding.
- Accelerated vesting on acquisition can be negotiated — see vesting acceleration.
Go deeper▾
Discussion questions▾
- What is fair vesting if one founder codes and another sells?
- How would you handle a founder breakup humanely?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.