Fundraising
Vesting Acceleration
Quick definition
Provision that vests unvested shares immediately upon a triggering event (acquisition, termination, or both).
Single-trigger acceleration vests shares upon an acquisition alone. Founders love it, acquirers hate it (they prefer ongoing employee retention). Double-trigger requires BOTH an acquisition AND involuntary termination within a defined window post-close (usually 12 months). Double-trigger is the negotiated norm: founders/key employees keep retention skin in the game, and the acquirer can still keep talent post-close.
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Frequently asked questions
- What is Vesting Acceleration?
- Single-trigger acceleration vests shares upon an acquisition alone. Founders love it, acquirers hate it (they prefer ongoing employee retention). Double-trigger requires BOTH an acquisition AND involuntary termination within a defined window post-close (usually 12 months). Double-trigger is the negotiated norm: founders/key employees keep retention skin in the game, and the acquirer can still keep talent post-close.
- Why is Vesting Acceleration important for startups?
- Vesting Acceleration is a fundraising concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does Vesting Acceleration belong to?
- Vesting Acceleration is a Fundraising term in the StartupCFO finance glossary, alongside other fundraising concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about Vesting Acceleration?
- Beyond this definition, see the related fundraising terms below, or explore StartupCFO's insights and tools that put Vesting Acceleration in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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