# What is Vesting? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Legal  
> **Canonical Citation:** [https://spidits.com/startup-glossary/vesting](https://spidits.com/startup-glossary/vesting)

## Definition
Vesting is the process by which founders and employees earn the right to own their allocated stock options or shares over a period of time.

## Architectural Mechanics & Deep Dive
Vesting is the process by which founders and employees earn the right to own their allocated stock options or shares over time. Standard vesting schedules span four years, meaning equity is earned gradually rather than upfront. Vesting protects the company by ensuring that if a co-founder or early employee leaves the company early, they do not retain a large ownership stake without having contributed long-term value.

## Industry Applications & Real-World Use Cases
Employee equity plans and founder alignment agreements

## Frequently Asked Questions

### What is the standard vesting schedule for startups?
A four-year vesting schedule with a one-year cliff, meaning equity is earned monthly or quarterly over 48 months after the first year.

### Why do founders vest their own stock?
To align incentives and protect the company. If a co-founder leaves early, the unvested shares return to the company rather than leaving with them.

## Related Terminology
- [cliff](https://spidits.com/startup-glossary/cliff)
- [option-pool](https://spidits.com/startup-glossary/option-pool)
- [cap-table](https://spidits.com/startup-glossary/cap-table)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*