Vesting

Venture capital

Vesting is a concept that is often used in ESOP/VSOP* or for founders' shares.

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Corporate/M&A Lawyer and Authorised Signatory
Katharina Erbe Teaser
Corporate/M&A Lawyer

Vesting means that the options or shares are not made (economically) available to employees and founders immediately after allocation, but gradually over a certain period, usually monthly or quarterly. The length of this period is contractually agreed, with a vesting period ranging between three and five years being standard market practice.

*Find the definition here: ESOP/VSOP