A vesting schedule is an incentive program established by a company that gives employees of large companies or founders of small companies full ownership of their stock options pursuant to a table of time periods and percentages. In the context of small and medium-size companies, the most common vesting schedule lasts for four years, with a one-year “cliff.” For instance,…

Founders of successful startups create brilliant concepts and devote considerable effort to see their business take off. But often this is not sufficient. Fresh capital is needed to implement marketing plans and hire personnel that provide relief to the founders’ day-to-day operations. Attracting new capital is arguably one of the primary goals of the founders. Conversely, this could cost them…