A vesting schedule is the timeline over which founders and employees earn ownership of their equity grants. Standard: 4 years with a 1-year cliff. Cliff means nothing vests until the first anniversary, then 25% vests at the cliff; remaining 75% vests monthly over 36 months. If you leave before the cliff, you get zero equity. Vesting protects companies from departing employees walking away with equity; protects co-founders from one departing early with full stake. Founder vesting often gets reset to 4 years at Series A. Acceleration provisions (single-trigger, double-trigger) vest equity faster upon acquisition or termination.
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Break-even point is the level of sales where total revenue equals total costs — zero profit, zero loss.…
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CAC
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Vesting Schedule
August 22, 2026 · Aditya Gupta
Corporate Finance
Related terms
ARR
Annual Recurring Revenue (ARR) is the annualized value of subscription contracts — the standard metric for SaaS businesses.…
Break-Even Point
Break-even point is the level of sales where total revenue equals total costs — zero profit, zero loss.…
Budget vs Actual
Budget vs Actual (BvA) variance analysis compares budgeted financial performance to actual results, identifying gaps and their drivers.…
Burn Multiple
Burn Multiple is a venture capital metric: Net Cash Burn / Net New ARR — measuring how efficiently…
Burn Rate
Burn rate is the rate at which a startup spends cash beyond what it generates from operations, expressed…
CAC
Customer Acquisition Cost (CAC) is total sales and marketing spend divided by new customers acquired in a period.…
