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Vesting Tool · 3 min

Do We Need Founder Vesting?

A vesting decision tool that models the cliff, the four-year curve, and what happens to your cap table if a co-founder leaves at month six.

FreeNo accounten-IE
Context

Your company today

Schedule

Model the vesting structure

Standard Irish practice: 48 months total, 12-month cliff. Move the sliders to test other shapes.

months
48months2460
months before any equity vests
12months024
Departure scenario

What if a co-founder leaves?

Set the month and the equity stake of the departing founder. The result panel updates live.

percent of the company
50%575
6months160
Result
0%
Founder retains (vested)
50%
Returns to the company

Without a vesting schedule, the entire 50% would remain with the departing founder. This is what investors see in due diligence.

Conversations to have, in writing

Conversations to have before you incorporate

  1. What is our agreed vesting duration and cliff, in writing?
  2. What is the difference between a good leaver and a bad leaver, and who decides?
  3. If one of us leaves before the cliff, what is the exact process?
  4. Are we putting this in place before, or after, our first investor conversation?

Questions founders ask

Do Irish startups need founder vesting?

If you intend to raise external capital at any point, yes — almost without exception. Investors expect founder vesting and will usually require it to be in place before closing. Putting it in place at incorporation is the cheapest version of that conversation.

What is a standard founder vesting schedule in Ireland?

Four years, with a one-year cliff, vesting monthly thereafter, is the dominant structure. Some founders use three years where the company is a side-project moving full-time. The key is to have something written down before you raise.

What happens if a founder leaves before the cliff?

Under a standard four-year-with-one-year-cliff schedule, a founder who leaves before twelve months has not vested any equity. The exact mechanism depends on whether the equity is held subject to reverse vesting or granted progressively, which a solicitor will document in the shareholders agreement.