# What is vesting?

Source: https://launch-rec.com/glossary/vesting. Category: Ownership. Market: US and UK.

## Definition

Earning equity over time rather than receiving it all on day one, usually across three or four years with a one-year cliff.

## In practice

Vesting protects everyone: the investor against a founder leaving in month four, and the founder against a co-founder who does the same.

Check whether vesting accelerates on a sale. Without acceleration, an exit before the schedule ends can cost a founder a meaningful slice of the proceeds.

## Related terms

- https://launch-rec.com/glossary/equity-stake
- https://launch-rec.com/glossary/shareholders-agreement