FindNStart

Founder Equity & Reverse Vesting Calculator

Calculate your vested vs. unvested equity over time based on standard Indian startup structures.

Vested as of Today

Vested Shares
0
Unvested (Reverse Vesting)
10,000

Vesting Schedule Curve

10,0007,5005,0002,5000
Cliff (12m)
Month 0Month 48

Frequently Asked Questions

What is reverse vesting?

Reverse vesting is a mechanism where founders receive their full equity upfront, but the company retains the right to repurchase unvested shares if the founder leaves before a certain period. As time passes, the shares 'vest' and the company's repurchase right diminishes.

What is a standard vesting schedule for founders?

The global and Indian startup standard is typically a 4-year (48-month) vesting period with a 1-year (12-month) cliff. This means no shares vest until the first anniversary, at which point 25% vests immediately, and the remaining 75% vests monthly over the next 3 years.

How does Good Leaver vs Bad Leaver affect vesting?

A 'Good Leaver' (e.g., leaving due to health or mutual agreement) typically keeps their vested shares. A 'Bad Leaver' (e.g., leaving due to fraud, breach of contract, or competing against the company) often forfeits both unvested and potentially vested shares, depending on the founders' agreement.

Are there tax implications for reverse vesting in India?

Yes. Under Section 56(2)(viib) (Angel Tax) and standard regulations, repurchasing shares at face value when the Fair Market Value (FMV) is higher might trigger tax liabilities. Always consult a Chartered Accountant to structure the repurchase or transfer efficiently.