Vesting for advisors and co-founders
Why equity should be earned over time and against milestones, never granted on signing.
What vesting is
Vesting means shares are earned gradually. A common founder schedule is four years with a one-year cliff: nothing vests in year one, then 25% vests, then the rest monthly.
Milestone vesting for advisors
Advisors are better rewarded against concrete outcomes — an introduction that leads to a signed deal, a closed round, a key hire. Each milestone unlocks a defined share amount once evidence is approved.
Protect the cap table
Unvested shares return to the company if someone leaves. Without vesting, a departed co-founder can keep a large stake while contributing nothing, which deters future investors.
This guide is general information, not financial or legal advice.