What is a Due on Sale Clause?
3 mins
An explanation of the due on sale clause, detailing why lenders require full repayment upon asset transfer and how this impacts startup exits and pivots.
Acceleration Clause
What is a Vesting Schedule?
3 mins
An explanation of how equity is earned over time, detailing the mechanics of the one-year cliff and why vesting protects founders from co-founder departures and dead equity.