Vesting / cliff
Equity is earned over time (vesting); a cliff is an initial period you must pass before any of it is yours.
The standard is four years with a one-year cliff — it keeps founders and staff committed and protects the cap table from early leavers.
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Option pool / ESOP
Equity set aside to grant to employees as options, usually 10–15% of the company.
Founder vesting
Founders' own shares vesting over time, so a co-founder who leaves early doesn't walk with a huge stake.
Vesting acceleration
Unvested equity vesting early on an event — single trigger on acquisition, double trigger on acquisition plus being let go.
ESS (Employee Share Scheme)
The Australian framework for giving staff equity, with specific tax rules for startups.
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