Business Pitch Dictionary by pitch.dog
Founder & employee equity · Specialist

Equity cliff reset

Also called: cliff reset

ELI5

Start a new waiting period before additional equity vests.

Used in conversation

“The equity cliff reset should not be hidden in a promotion letter.”

Definition

A new or changed cliff applied to an equity grant, usually requiring careful consent and explanation.

Here “Equity cliff reset” means: A new or changed cliff applied to an equity grant, usually requiring careful consent and explanation.

Pitch context

You will see “Equity cliff reset” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.