What happens if a startup is acquired before every employee’s Cliff period ends?

I understand the possibility of that happening is crazy, but do we just not get any equity?

*brand new startup where all employees were hired less than 1 year ago

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There is often a clause in the sale agreement that grants immediate vesting to current employees, either through shares in the new company or cash depending on the transaction.

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^ this and there may also be a change in control clause in your grant that dictates what might happen if you get acquired

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It's called accelerated vest and it should be spelled out what happens in a liquidity event.

That said, sometimes the company will downsize pre and cut checks as a separation package to pay that down.

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