Gradual earning of equity over time or milestones.
Typical: 4-year vesting with 1-year cliff. 25% vests at cliff, then monthly or quarterly after.
Aligns incentives over time. Protects company if someone leaves early. Investors expect founder vesting.
10,000 shares, 4-year vest, 1-year cliff. After 1 year: 2,500 vested. After 2 years: 5,000 vested.
No founder vesting (red flag for investors); not understanding acceleration clauses; forgetting about exercise windows.