Vesting and lockup

This article explains when investors receive company tokens and when they can transfer them.

How vesting works

Each round has its own vesting schedule, set out in that round's terms. A schedule can include a cliff (an initial period before any tokens vest), a total duration and monthly releases.

Investor vesting is linked to the company's progress in drawing down the raised funds. Investors' tokens never vest faster than the funds are released to the company.

How the lockup works

Equity-backed tokens are subject to a 12-month lockup from the round start date. Tokens reach an investor's wallet only once they are both vested and past the lockup.

Transfers after the lockup

After the lockup, equity-backed tokens can be transferred only to other verified and eligible holders. Every recipient must accept the investment terms and the deed poll before a transfer completes.

Equity-backed tokens are not listed on any exchange or decentralised trading pool, and wrapped or synthetic versions are not permitted.

Multiple rounds

If a company raises again, the new round has its own vesting schedule and lockup. A later round does not change the schedule of an earlier round.


Need more help?

We’ve aimed to cover everything here, but if your question isn’t answered — or you’ve spotted something that needs correcting — contact us at team@usespring.io

A member of the team will respond.

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