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Vesting

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The schedule under which founders and employees must remain in the company before receiving their full share of the equity. For example, if you have a five-year vesting schedule you may get access to 0% in year one, 25% in year two, 50% in year three, 75% in year four, and 100% in year five. A schedule helps to instill staff loyalty and keep the company together for a certain period of time. Cliff vesting is when someone becomes fully invested on a specified date. To know more about start-ups, contact Entrepreneurs Collective and become a free member today.

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