Deal Terms
Double Trigger Acceleration
Last updated
Quick Answer
Full or partial vesting acceleration that requires two events to trigger, typically a change of control plus termination of the employee.
What it is
Double trigger acceleration requires two separate events before accelerated vesting occurs: first, a change of control (acquisition or merger) of the company, and second, termination of the employee without cause or resignation for good reason within a specified period (usually 12-24 months) after the change of control. This structure is preferred by acquirers because it maintains retention incentives while still protecting employees.
In Practice
The CTO's equity agreement included double trigger acceleration: 100% vesting would accelerate only if the company was acquired AND she was terminated without cause within 18 months of closing. When the $2B acquisition closed and she was retained, her vesting continued on the original schedule.
Operational context
What good looks like
The term is tied to a real workflow, not just a definition.
Ownership, timing, and evidence are clear.
The reader can tell what decision the concept supports.
Related terms point to the next useful explanation.
Why It Matters
Double trigger is the market standard for executive equity protection in VC-backed companies. It balances employee protection against acquirers who need to retain key talent. Acquirers strongly prefer it over single trigger, which can create a windfall for departing employees.
VC Beast Take
The window period matters: 12 months is standard, but negotiating for 18-24 months provides more protection for employees who may face constructive dismissal through role changes or relocation after an acquisition. The definition of 'good reason' is equally important and often heavily negotiated.
Related tools and reading
Term Family
Related concepts
Further Reading
VC Term Sheet Template & Guide: Every Clause Explained with Examples
A clause-by-clause breakdown of every standard VC term sheet provision — what each term means, what's market, what to negotiate, and the red flags that cost founders millions.
How Vesting Works at Startups: Cliffs, Schedules, and Acceleration
Your equity doesn't belong to you all at once. Vesting determines when you actually earn your shares — and what happens to them if you leave early, get fired, or the company gets acquired.
What Happens to Your Stock Options If Your Startup Gets Acquired
Acquisitions are where startup equity either pays off or evaporates. Here's how acceleration clauses, liquidation preferences, and deal structure determine whether employees see real money.
Startup Equity Compensation Explained: Stock Options, RSUs, and More
ISOs, NSOs, RSUs, restricted stock — startup equity comes in many flavors. Here's what each type actually means for your compensation, your taxes, and your financial future.
How to Negotiate a Term Sheet as a First-Time Founder
Your first term sheet is exciting and terrifying. Know what's negotiable, what's standard, and the practical tactics for pushing back on liquidation preferences, board seats, and protective provisions.
Term Sheet Explained: Every Clause Founders Must Know
Term sheets are dense, jargon-heavy, and consequential. Here's a founder-friendly breakdown of every major clause and what it means for your company.
Related Guides
How to Set Up a Startup Option Pool: ESOP Guide for Founders
Setting up your employee option pool wrong costs you money and credibility. Here's the complete playbook: pool sizing, option vs RSU, ISO vs NSO, vesting schedules, and tax implications.
How to Read a Term Sheet: Line-by-Line Guide for Founders
Every major term sheet clause decoded: liquidation preference, board composition, anti-dilution, vesting, protective provisions, and more. With a negotiation priority list at the end.
Related Questions
Browse all questions →Frequently Asked Questions
What is Double Trigger Acceleration in venture capital?
Double trigger acceleration requires two separate events before accelerated vesting occurs: first, a change of control (acquisition or merger) of the company, and second, termination of the employee without cause or resignation for good reason within a specified period (usually 12-24 months) after...
Why is Double Trigger Acceleration important for startups?
Understanding Double Trigger Acceleration is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
What category does Double Trigger Acceleration fall under in VC?
Double Trigger Acceleration falls under the deal-terms category in venture capital. This area covers concepts related to the financial and legal terms that define investment agreements.
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