Glossary · Employee equity
Reverse vesting
Founders already own shares, but the company can buy back unvested shares for a token price if someone leaves early. It is vesting logic applied to shares you already hold — common in early startup formations.
Related: Founder vesting · Vesting cliff · Cap table
A bit more nuance▾
- Different from classic employee options vesting, but the goal is similar: protect the team if someone walks.
- Investors often expect clean reverse vesting before funding.
Go deeper▾
Discussion questions▾
- What vesting schedule matches how each founder’s contribution will show up over time?
- How would you explain reverse vesting to a non-lawyer cofounder?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.