Vesting Period Explained in Under 2 Minutes скачать в хорошем качестве

Vesting Period Explained in Under 2 Minutes

What is a vesting period? In this video, we explain to you what a vesting period is and how it plays a role with vested stock options at a startup. Does your VC backed startup need help to manage your books, burn, and projections? Kruze’s clients have raised over $3.5 billion in venture funding - find out how we help companies fly through diligence and raise the next round: https://kruzeconsulting.com/startup-v... Hey, it's Scott Orn at Kruze Consulting and today I'm answering the question, what is a vesting period at a startup? And basically a vesting period talks about how you get your stock options. And so when you join a startup, you typically get some stock options, like a little bit of ownership in the company, but you vest those shares over, typically, four years. And the basic idea is they're giving you stock options to try to help retain you. They recognize that you're working in the company, you're putting your blood, sweat, and hopefully no tears, but maybe some tears, into the company. And so you get a little bit of equity in the company. But instead of giving that equity to you all at once and saying, "Thank you very much," if they did that, you might just leave and have all the stock. And so what they do is they vest it over, typically, four years. So the first 12 months are typically called a cliff, meaning you don't vest anything until you complete those full 12 months. Then after that, you start vesting on a monthly basis. All the way up till typically that 48 month period, you know, four years times 12 months in a year. But again, you're just gonna get a little sliver of stock every month, essentially, and the employer, the startup is hoping that helps keep you at the startup because you start seeing a lot of upside. And sometimes you even get like a second or third equity grant that will have its own vesting schedule for those equity grants. So I hope that helps. The kind of moral of the story is you're not gonna get all the stock right up front. It's gonna come over time, which frankly helps align you and the startup because the startup wants you there and it needs you to create value over time. But hopefully that value is pretty huge and the stock price goes up and you can make some money on that. Hope that helps, thanks.