4 Years with a One Year Cliff: Definition and Examples (2022) (2024)

Table of Contents
4 Years with a One Year Cliff Defined 4 Years with a One Year Cliff Examples

4 Years with a One Year Cliff Defined

4 years with a one-year cliff is a vesting schedule typically used in startup stock. It means the stock grant, typically options, will be fully vested after 4 years. The one-year cliff is the anniversary of the stock’s issuance. Each founder vests a quarter of their shares, with vested transfers coming monthly after that.

4 Years with a One Year Cliff Examples

Examples of 4 years with a one year cliff include:

  • Example 1. Startup employees option grant
  • Example 2. Venture capitalists (VCs) reqruiement for Startup founders

Here’s an article about cliff investing.

See Also
Guideline Help Center
4 Years with a One Year Cliff: Definition and Examples (2022) (2024)
Top Articles
The Biggest Finance Mistakes Young Professionals Make
Durable Medical Equipment Billing Services in Georgia, GA
Latest Posts
School Counseling YouTube Video Guide — Bright Futures Counseling
Early retiree shares 13 'stupid simple' money rules that helped him save $1 million: 'I wasn't born rich'
Article information

Author: Kareem Mueller DO

Last Updated:

Views: 5942

Rating: 4.6 / 5 (46 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Kareem Mueller DO

Birthday: 1997-01-04

Address: Apt. 156 12935 Runolfsdottir Mission, Greenfort, MN 74384-6749

Phone: +16704982844747

Job: Corporate Administration Planner

Hobby: Mountain biking, Jewelry making, Stone skipping, Lacemaking, Knife making, Scrapbooking, Letterboxing

Introduction: My name is Kareem Mueller DO, I am a vivacious, super, thoughtful, excited, handsome, beautiful, combative person who loves writing and wants to share my knowledge and understanding with you.