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Free downloadable template

Founder Vesting Agreement Template

Use the template to discuss how equity is earned over time, then validate whether the partnership can handle the conversation before equity is locked.

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Built for founder commitment decisions

Use this template when

Founders who have agreed on equity but need to protect the company if commitment changes.

Template preview

The downloaded Word file includes the same sections below, so you can review the structure before saving it.

1. Equity subject to vesting

Each founder's target equity should be listed separately from the amount currently vested. This keeps the ownership promise connected to ongoing contribution.

  • Founder: [Name]
  • Target ownership: [Percentage]
  • Shares or units subject to vesting: [Number or percentage]
  • Vesting start date: [Date]

2. Vesting schedule and cliff

The founders agree that equity will vest over [Vesting Period]. No equity vests before the cliff unless the founders explicitly agree otherwise in writing.

  • Vesting period: [48 months / custom]
  • Cliff period: [12 months / custom]
  • Vesting frequency after cliff: [Monthly / quarterly / custom]
  • First vesting event: [Date or rule]

3. Departure before full vesting

If a founder leaves before all equity is vested, the company should have a clear process for unvested equity. The goal is to avoid dead equity while treating the departing founder fairly.

  • Voluntary departure: [Treatment of unvested equity]
  • Termination for cause: [Treatment of unvested and vested equity]
  • Good leaver scenario: [Optional treatment]
  • Notice period: [Number of days]

4. Role change or reduced commitment

The founders should agree what happens if a founder becomes part-time, changes responsibilities, or stops owning a critical function.

  • Reduced commitment threshold: [Hours per week or role change]
  • Effect on future vesting: [Continue / pause / amend]
  • Approval required for vesting changes: [Unanimous / board / other]

5. Acceleration and sale events

Acceleration terms should be explicit. If they are not needed, say so. If they are needed, define whether acceleration is single-trigger, double-trigger, partial, or none.

  • Acceleration on company sale: [None / partial / full]
  • Acceleration on termination after sale: [None / partial / full]
  • Approval process for exceptions: [Process]

Legal disclaimer

This template is for informational purposes only and does not constitute legal, tax, or financial advice. Review final vesting terms with qualified professionals before signing.

Download, adapt, then validate the partnership

A template helps you structure the conversation. CofounderFit helps you test whether the partnership can survive the conversation before equity, vesting, and commitment are final.

Download .docxStart assessment

Related founder tools

Read the cofounder vesting guideUnderstand cliffs, schedules, departures, and role changes.Use the equity calculatorDecide the target split before deciding how it vests.Generate a full agreementPut vesting inside the broader founder agreement.Take the compatibility assessmentSee whether the founders can handle high-stakes terms calmly.

Founder Vesting Agreement Template FAQ

What is a founder vesting agreement?

It defines how founder equity is earned over time and what happens to unvested equity if a founder leaves or changes commitment.

Do founders need vesting if they trust each other?

Yes. Vesting is not about distrust; it protects the company and remaining founders if life, contribution, or commitment changes.

What vesting schedule is common for startups?

A common pattern is four years with a one-year cliff, but the right terms depend on jurisdiction, company structure, and founder context.

Legal disclaimer

This template is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and enforceability vary by jurisdiction. Have any final agreement reviewed by a qualified professional before signing.