Venture Deals · glossary
A founder owns every share from the start but earns the right to keep them over time. If the founder leaves early, unvested shares can be taken back at what was paid. It works only if the constitution carries it. Clause 12 · Chapter 5
Explained in Chapter 5, Vesting, Leavers and the Founder Who Left, of Venture Deals.
Reverse vesting means the founders own all their shares from day one, but must give back the unvested ones if they leave early. Paragraph 3 spreads vesting over 48 months, and nothing vests in the first 12 (the cliff). A founder who leaves must transfer the unvested shares on request, at the lower of the price paid and market value.Read Chapter 2, Founding a Company →
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