Reverse Vesting

Reverse Vesting is an equity arrangement where shares are issued upfront (often to founders) but are subject to the company’s right to repurchase unvested shares if the holder leaves, effectively creating vesting through repurchase rights. In startup founder equity, Reverse Vesting aligns incentives and protects the cap table, and Reverse Vesting terms typically mirror standard vesting schedules and acceleration provisions.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.