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🌍 US & Europe · Vesting & exerciseVesting cliff
Also called: cliff, one-year cliff
In one line
An initial period — usually one year — during which nothing vests, and at the end of which a first chunk vests all at once.
In plain English
Most grants have a 'cliff': if you leave before your first anniversary, you walk away with nothing. Stay past it and a block (often a quarter of the grant) vests in one go, with the rest trickling in monthly after that.
If you were explaining it to a 5-year-old
You have to help with chores for a whole year before you get any chocolate at all. On the day you hit one year, you suddenly get a big handful — then a little more each month.
Why it matters when you sell
If you're near your cliff, leaving a few weeks too early can cost you your entire first year of equity. It changes the timing of when you'd have anything to sell.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.