# Cliff

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

Also called: vesting cliff, one-year cliff, 1 year cliff, one year cliff, cliff vesting

The first stretch of a [vesting schedule](https://ecosystem.samcarlton.com/vesting), during which nothing vests. A person who leaves before the cliff keeps no [shares](https://ecosystem.samcarlton.com/equity). A person who stays past it receives that first portion at once.

**For example:** An [employee](https://ecosystem.samcarlton.com/contractor-vs-employee) has options that [vest](https://ecosystem.samcarlton.com/vesting) over four years with a one-year cliff. Leaving in month 10 means keeping none. On the first anniversary, a quarter vests in one step.

## Connects to (5)

- [Vesting](https://ecosystem.samcarlton.com/vesting): Earning your shares bit by bit over time instead of all at once.
- [Stock options](https://ecosystem.samcarlton.com/stock-options): The right to buy shares in the company later at a price that is set today.
- [Equity](https://ecosystem.samcarlton.com/equity): Ownership in a company.
- [Advisor shares](https://ecosystem.samcarlton.com/advisor-shares): A small amount of equity a startup gives an advisor in return for ongoing help, usually as stock options that vest over the period of the…
- [83(b) election](https://ecosystem.samcarlton.com/83b-election): A notice sent to the US tax agency, the IRS, by a person who receives stock that vests over time.

> This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.

Map view: https://ecosystem.samcarlton.com/cliff