Deal Terms
Last updated
Quick Answer
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.
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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.
Understanding Single Trigger Acceleration is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
Single 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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