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🌍 US & Europe · Vesting & exerciseFounder vesting
Also called: founder stock vesting
In one line
Vesting applied to founders' shares, so they earn their equity over time rather than owning it all outright from day one.
In plain English
Even founders usually vest their shares, protecting the company if a co-founder leaves early. Unvested founder shares can be repurchased by the company.
If you were explaining it to a 5-year-old
Even the kids who started the club have to keep helping to fully earn their toys — they don't get them all instantly either.
Why it matters when you sell
Founder vesting shapes the cap table's stability and how shares could revert if a founder departs — context for the company's ownership.
Related terms
Put it to use
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Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
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