Vesting & grants
What is Cliff?
A waiting period - typically 1 year - before any equity vests. If service ends before the cliff, the employee or founder gets nothing.
A vesting cliff means no equity vests until a minimum period of service is completed. The startup standard is a 1-year cliff: 25% of your grant vests on the 1-year anniversary; if you leave before that date (for any reason), you keep zero shares. After the cliff, the remaining 75% typically vests monthly over 36 months. The cliff protects the company from giving away material equity to people who don't stay long enough to contribute meaningfully.