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Equity basics: vesting, cliffs, acceleration, and exits. As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you. Advisor terms (0.5–2.0%): 4 (or 2) year vesting, optional cliff, full acceleration on exit. Getting equity structures right. When it comes to equity terms, there are only 3 things to understand: vesting, cliffs, and acceleration.
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