Reverse Vesting

Overview

Reverse Vesting is a critical mechanism that protects startups when founders leave prematurely. Unlike traditional vesting where equity is granted over time, reverse vesting assumes founders receive their equity upfront but must "earn" it by staying with the company. We structure and document comprehensive reverse vesting arrangements including vesting schedules , acceleration clauses (single and double-trigger), good/bad leaver definitions, buyback pricing mechanisms, and transfer restrictions. Our service includes drafting vesting agreements, shareholder resolutions, and Articles of Association amendments. This structure ensures that if a founder leaves early, the company can repurchase unvested shares—maintaining fairness among remaining founders and preserving equity for future hires or investors. We design vesting terms that balance founder retention with fairness, ensuring your startup isn't damaged by premature departures while maintaining team motivation and commitment.