What Founders Should Know About Vesting Schedules and Their Impact on an IPO
Vesting schedules are a fundamental aspect of equity management for startup founders. They dictate how and when founders and employees earn their shares over time, ensuring commitment to the company’s long-term success. Understanding vesting schedules is particularly crucial when preparing for an Initial Public Offering (IPO), as investors closely examine equity structures before making decisions.
This guide delves into vesting schedules, their types, tax implications, and best practices for founders aiming for a successful IPO.