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Deal Terms

Single Trigger Acceleration

Last updated

Quick Answer

An equity provision that fully accelerates vesting upon a single event, typically a change of control (acquisition).

What it is

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.

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

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 tools and reading

Frequently Asked Questions

What is Single Trigger Acceleration in venture capital?

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.

Why is Single Trigger Acceleration important for startups?

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.

What category does Single Trigger Acceleration fall under in VC?

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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