Welcome to Phase Two of a four-part Splitting Equity Series. If you missed it, start your journey here: Introduction - Early Startup Equity — Getting it Right before continuing on if you haven’t already, and go in order from there.
Phase One - Startup Equity - Avoiding Early Mistakes
Phase Two - Part 1 - How Startup Equity Works
Part 2 - Startup Stock Options
Part 3 - Startup Stock Vesting ( ←YOU ARE HERE 😀)
Part 4 - Startup Stock Valuation
Phase Three - How to Split Equity
Phase Four - Equity Management
Let's continue!
Vesting is a way to allow members to "earn" their stock over some period of time or per specific milestones. A common "4-year vesting schedule" means that a member of the company will earn 25% of their stock or...