Startup Investing

Cliff

Definition

What is Cliff?

A minimum period before any vesting occurs.

Example in practice

With a one-year cliff, an employee leaving after six months receives no vested options.

Keep learning

A preliminary document outlining the main commercial terms of a proposed investment.

A company's agreed value immediately before a new investment.

A company's value immediately after adding new investment capital.

The rate at which a company spends cash, commonly measured monthly.

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