# Vesting

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

Also called: vesting schedule, vest, vested, founder vesting, four-year vesting, vesting period

Earning your [shares](https://ecosystem.samcarlton.com/equity) bit by bit over time instead of all at once. If you leave early, you keep only what you have earned so far. A '[cliff](https://ecosystem.samcarlton.com/cliff)' is a minimum time you must stay before you earn any.

**For example:** Two [co-founders](https://ecosystem.samcarlton.com/technical-co-founder) agree that their [shares](https://ecosystem.samcarlton.com/equity) vest over several years. One leaves after the first year and keeps only the portion earned by then, not the full amount.

## Connects to (8)

- [Equity](https://ecosystem.samcarlton.com/equity): Ownership in a company.
- [Stock options](https://ecosystem.samcarlton.com/stock-options): The right to buy shares in the company later at a price that is set today.
- [Technical co-founder](https://ecosystem.samcarlton.com/technical-co-founder): A founding partner who can build the product themselves and who makes the technology decisions.
- [Cliff](https://ecosystem.samcarlton.com/cliff): The first stretch of a vesting schedule, during which nothing vests.
- [Equity vs cash compensation](https://ecosystem.samcarlton.com/equity-vs-cash): The two main ways a startup pays people.
- [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.
- [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…
- [Founder](https://ecosystem.samcarlton.com/founder): A person who starts a company and owns part of it from the beginning.

> 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/vesting