Reverse vesting is a mechanism by which a co-founder is granted shares upfront that vest over time. If the co-founder leaves before the vesting period ends, the company can buy back the unvested shares. It is widely required by investors as a condition of investment, as it gives them confidence the founding team will stay.
Employee vesting allows early hires to build up share ownership over time, incentivising them to stay with the business. We draft tailored vesting and reverse vesting agreements, setting out terms, durations, and repurchase mechanisms to protect founders, investors, and the business.