Deal Terms
Single Trigger Acceleration
An equity provision that fully accelerates vesting upon a single event, typically a change of control (acquisition).
Single trigger acceleration automatically vests all remaining equity when one event occurs (usually an acquisition). Unlike double trigger, no termination is required. This is more employee-friendly but less attractive to acquirers because it reduces retention incentives post-acquisition.
In Practice
The CEO's single trigger provision meant that when the $800M acquisition closed, their remaining 2 years of unvested options (worth $15M) immediately vested — regardless of whether they stayed.
Why It Matters
Single trigger provisions can complicate acquisitions because acquirers lose the retention leverage of unvested equity. They're typically reserved for C-level executives.
VC Beast Take
Single trigger is the nuclear option of equity provisions. It guarantees the payout but often makes the acquisition deal harder to get done.
Related Concepts
Further Reading
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.
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.
Newsletter
The VC Beast Brief
Join thousands of founders and investors. Every Tuesday.
VentureKit
Ready to launch your fund?