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:

  1. The strike price is today’s strike price, not a higher strike price 4 years from now.
  2. The clock on long-term capital gains starts as soon as you exercise the grant.
  3. A new grant 4 years from now wouldn’t be as big.
  4. 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.

Related: 1-(wo)man startups and Ask forgiveness, not permission

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Topics Culture · Vesting