Nivi · March 1st, 2013
Every team member of AngelList is on a 6-year vesting schedule. Including the founders. Why?
Because it takes a long time to build something important. And we want everyone to stick around for a long time.
Because we want people who are here for the mission, not a payday.
Because it sells prospective hires: the team you’re joining isn’t going anywhere.
Does that mean I get more equity?
Everyone asks whether they get more equity to make up for the longer vesting schedule. A good way to think about that is whether we would give smaller grants if new team members were on a 4-year schedule. And the answer to that is ‘yes’.
There are a lot of benefits to getting additional equity now, instead of 4 years from now:
- The strike price is today’s strike price, not a higher strike price 4 years from now.
- The clock on long-term capital gains starts as soon as you exercise the grant.
- A new grant 4 years from now wouldn’t be as big.
- Any acceleration is likely to consider the entire grant, not a smaller 4-year grant.
If you’re interested in a 6-year vesting schedule, AngelList is hiring engineers and designers.