Vesting / Cliff

Vesting refers to the time-staggered allocation of shares or options to founders and employees. The cliff sets a minimum period of service before which no tranches are allocated (vested). In the DACH region, a four-year vesting with a one-year cliff is market standard.

Vesting structures are combined with good-leaver/bad-leaver clauses, acceleration rules (in particular in an exit scenario) and buy-back rights. They are a central element of incentive design for existing and new team members.