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Share vesting

Share vesting is essentially where someone is given some upfront shares which the company can buy back ("unvested shares"). Over time or upon fulfilment of specific conditions, the right for the company to buy back the shares gradually decreases, to the point where they are no longer able to buy any shares back.

A share vesting agreement must be created, outlining the terms of the agreement.

Typically, such an agreement has a one-year cliff, motivating members to stay for at least one year (to be able to get any equity), before taking a few years to reach a member's full allocation of equity.

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