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
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 Do Due Diligence on a Startup: The VC's Complete Framework
The complete VC due diligence framework: team DD, market DD, product DD, financial DD, legal DD, and customer interviews. With red flags and deal-breakers for each track.
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 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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