4 Years with a One Year Cliff Defined
4 years with a one-year cliff is a vesting schedule typically used in startup stock. It means the stock grant, typically options, will be fully vested after 4 years. The one-year cliff is the anniversary of the stock’s issuance. Each founder vests a quarter of their shares, with vested transfers coming monthly after that.
4 Years with a One Year Cliff Examples
Examples of 4 years with a one year cliff include:
- Example 1. Startup employees option grant
- Example 2. Venture capitalists (VCs) reqruiement for Startup founders
Here’s an article about cliff investing.