SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/founder-equity-vesting

What does vesting do to a startup equity grant?

It makes equity become earned or exercisable over time or milestones.

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  1. It guarantees an exit price
  2. It releases equity over time or conditions ✔
  3. It prevents all dilution

Why: Vesting means the recipient does not receive the full benefit at once. The schedule ties portions of the grant to continued service or other stated conditions.

Huh, didn't know that: Vesting terms can use time, performance milestones, or a combination.

The dad joke
The equity wore layers because it vested a little at a time.
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References

Answer: It releases equity over time or conditions. Vesting means the recipient does not receive the full benefit at once. The schedule ties portions of the grant to continued service or other stated conditions.

  1. Understanding Startup Stock Options www.ycombinator.com/blog/understanding-startup-stock-options-berbix
    you don't receive all your options right away, but that you'll receive them over time.
    Checked 2026-10-11.

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