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Reverse Vesting: Founders Stay, Equity Stays!

Worried About Founders Leaving Too Soon? Don’t let early exits put your startup at risk! Startup Movers ensures your equity stays protected with expert reverse vesting solutions—keeping your business stable and investor-ready.

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What is Reverse Vesting

Safeguard your equity from hidden risks!

Reverse vesting is a mechanism used in startup equity agreements where founders or key employees receive shares upfront but must "earn" them over time by staying with the company.

If they leave early, the company or the remaining founders has the right to buy back the unvested shares at a nominal price.

Benefits of Reverse Vesting

Why Reverse Vesting is a game-changer for startups!

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Founder Commitment

Encourages founders to stay invested in the company’s success.

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Fair Equity Distribution

Protects against a situation where inactive founders hold significant stakes.

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Prevents Equity Deadlock

Stops inactive founders from holding large stakes and blocking decisions.

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Investor Confidence

Attracts investors by securing equity against premature exits.

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Team Stability

Ensures that key employees contribute long-term before gaining full ownership.

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Flexible Exits

Allows the company to reclaim and reallocate unvested shares efficiently.

Get Our Reverse Vesting Services In 5 Simple Steps!

Simplify reverse vesting with our hassle-free process!

Connect with Experts

Submit Required Documents

In-Depth Analysis & Structuring

Review and Finalize Agreement

Lock And Implement

Think Long-Term – Reverse Vesting for a Stronger Startup!

Avoid founder disputes, align incentives, and future-proof your company!

Plan your vesting!

Documents Required for Reverse Vesting Agreement

Complete your reverse vesting process with the right paperwork!

Who and Why
  • Existing Founders' Agreement, if any.
  • Reverse Vesting Terms & Conditions
  • Any Previous Shareholder Agreement
  • Cap Table Documentation
  • Company’s Incorporation Papers
  • Company’s Financial Statements

How Reverse Vesting Works

Step-by-step guide to the Reverse Vesting process

Reverse Vesting Works

Reverse Vesting vs. Regular Vesting : What’s the Difference?

Know what works best for you?

Feature Reverse Vesting Regular Vesting
Equity Distribution Shares granted upfront but vest over time Shares are granted over time
Equity Distribution Company can buy back unvested shares Shares are granted over time
Risk Protection Company can buy back unvested shares No buyback option for the company
Control & Security Safeguards company equity from premature exits No such protection, equity remains with the individual
Common Use Case Founders & key executives Employees & advisors

Move Smart with Startup Movers!

Trust Startup Movers for hassle-free Reverse Vesting!

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Expert Guidance

10+ years of experience with 80+ experts guiding you every step of the way.

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Transparent Pricing

All-inclusive pricing with no hidden fees.

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Quick Turnaround

Streamline Your Reverse Vesting Process with Experts!

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Comprehensive Support

From documents to compliance, we handle it all.

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Join a large community of successful businesses.

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We’ve helped startups grow into billion-dollar businesses.

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Frequently Asked Questions

Your concerns matter: Explore our FAQs for guidance!

A reverse vesting order is a legal agreement that dictates how founders or key executives earn their shares over time.

While shares are issued upfront, the company retains the right to buy back unvested shares if the individual leaves before the reverse vesting schedule is complete.

Key clauses in a reverse vesting agreement include:

  • Vesting Schedule: Defines the period (typically 3-4 years) over which shares vest.

  • Cliff Period: A minimum tenure (usually 1 year) before any shares vest.

  • Buyback Rights: Allows the company to repurchase unvested shares if the founder departs early.
  • Termination Provisions: Specifies what happens to shares if a founder exits voluntarily or is terminated.

TA reverse vesting schedule ensures that founders remain committed to the startup while protecting investors from premature exits.

It prevents inactive founders from holding equity unfairly and helps maintain team stability.

Unlike traditional vesting, where shares are granted over time, reverse vesting provides shares upfront but requires founders to earn them back through continued involvement in the company.

If they leave early, unvested shares are reclaimed by the company.

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