Advisors play a valuable role in supporting startups by providing strategic guidance, industry expertise, and critical connections. In exchange for their services, startups often grant non-qualified stock options (NQSOs).
Below, we highlight four key vesting terms:
• Vesting Duration: How long until the options are 100% vested
• Cliff vs. No Cliff: Percentage of options that included a cliff
• Cliff Length: Length of the initial cliff period
• Vesting Frequency: How often options vest