Deal Terms
Founder Vesting Acceleration
A provision that immediately vests some or all of a founder's unvested shares upon certain trigger events like acquisition or termination.
Founder vesting acceleration is a contractual provision that causes unvested founder shares to vest immediately upon specified events. Single-trigger acceleration vests shares upon one event (typically an acquisition). Double-trigger acceleration requires two events (acquisition plus termination). Acceleration protects founders from losing unvested equity when their company is acquired, especially if they're terminated post-acquisition.
In Practice
The founder had double-trigger acceleration: 50% of unvested shares would vest immediately if the company was acquired AND she was terminated without cause within 12 months of the acquisition.
Why It Matters
Acceleration provisions are critical for founders selling their companies. Without acceleration, a founder who gets fired after an acquisition could lose years of unvested equity — the exact scenario double-trigger was designed to prevent.
VC Beast Take
Single-trigger is great for founders but terrifying for acquirers. Double-trigger is the standard compromise that protects founders without giving them a golden parachute to walk away.
Related Concepts
Further Reading
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.
How to Negotiate Your Term Sheet: A Founder's Playbook
A tactical guide to negotiating your startup term sheet — which terms matter most, where to push back, and how to protect your interests without killing the deal.
How to Read a Term Sheet: A Practical Breakdown
Term sheets aren't designed to be readable. Here's a section-by-section guide to what matters, what's standard, and what should make you walk away.
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.
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