# Founder Vesting

*Startups & Venture Capital — Finicade finance glossary*

Founder vesting puts founders own shares on a vesting schedule, typically four years with a one-year cliff, so early leavers do not keep a large stake.

Founder vesting subjects founders' own shares to a vesting schedule, typically four years with a one-year cliff, so someone who leaves early doesn't keep a large stake for a short contribution. Investors insist on it and experienced founders want it, because the alternative is a departed co-founder holding 30% of a company they no longer help build — a defect that makes the next round very hard to raise.

**Also known as:** founder shares vesting, reverse vesting, four year vest

**Related terms:** [Vesting](https://finicade.com/glossary/vesting), [Cap Table](https://finicade.com/glossary/cap-table), [Option Pool](https://finicade.com/glossary/option-pool), [Dilution](https://finicade.com/glossary/dilution), [Board Seat](https://finicade.com/glossary/board-seat)

Source: https://finicade.com/glossary/founder-vesting