Deal Terms
Vesting Acceleration
Provisions that speed up an employee's equity vesting schedule, typically triggered by acquisition or termination events.
Vesting acceleration allows unvested equity to vest faster than the original schedule, usually triggered by specific events. Single-trigger acceleration vests shares on a single event (usually acquisition). Double-trigger acceleration requires two events (acquisition plus termination). These provisions are especially important for founders and early employees who might be terminated after an acquisition.
In Practice
A founder has double-trigger acceleration: if the company is acquired (trigger 1) and the founder is terminated without cause within 12 months (trigger 2), 100% of unvested shares immediately vest.
Why It Matters
Acceleration provisions protect founders and employees from losing unvested equity in M&A events. They're heavily negotiated and can significantly impact acquisition deal dynamics.
Related Concepts
Further Reading
Startup Compensation: How to Evaluate an Offer Beyond Salary
A startup offer is more than salary and options. Here's a framework for evaluating total compensation, valuing equity realistically, and comparing startup offers to big tech packages.
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.
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