Vesting and Employee Stock Options (ESOP)
Vesting schedules define when the founders and employees get full ownership of their shares. Vesting schedules usually have a standard vesting period of four years with a one-year cliff. Negotiation of vesting schedules from investors should be a point of interest to ensure the key employees and founders hold on to the company for the long haul. Other areas that normally investors will be canvassing for in return for getting their part include an Employee Stock Option Plan (ESOP) that usually aims to prize talent, again taking into account dilution.