Fundraising
Vesting Acceleration (Single vs Double Trigger)
Quick definition
Provisions that accelerate unvested equity on change of control or termination.
SINGLE TRIGGER: unvested shares accelerate on ONE event (typically change of control / acquisition). Most founder-friendly but VC-disfavored. DOUBLE TRIGGER: requires TWO events — change of control + involuntary termination without cause. Standard in institutional rounds. Variants: 100% double trigger (full acceleration), 50%/100% (partial on CIC + full on termination), 12-month acceleration (fixed amount). 'Cause' and 'good reason' definitions are heavily negotiated — narrow 'cause' + broad 'good reason' favors founders.
Related fundraising terms
SAFE (Simple Agreement for Future Equity)
Convertible instrument commonly used for early-stage rounds.
409A Valuation
Independent valuation of common stock used to set option strike prices.
Cap Table
A record of all ownership interests in your company.
Pro Rata Right
An investor's right to maintain their ownership % in future rounds.
Frequently asked questions
- What is Vesting Acceleration (Single vs Double Trigger)?
- SINGLE TRIGGER: unvested shares accelerate on ONE event (typically change of control / acquisition). Most founder-friendly but VC-disfavored. DOUBLE TRIGGER: requires TWO events — change of control + involuntary termination without cause. Standard in institutional rounds. Variants: 100% double trigger (full acceleration), 50%/100% (partial on CIC + full on termination), 12-month acceleration (fixed amount). 'Cause' and 'good reason' definitions are heavily negotiated — narrow 'cause' + broad 'good reason' favors founders.
- Why is Vesting Acceleration (Single vs Double Trigger) important for startups?
- Vesting Acceleration (Single vs Double Trigger) is a fundraising concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does Vesting Acceleration (Single vs Double Trigger) belong to?
- Vesting Acceleration (Single vs Double Trigger) is a Fundraising term in the StartupCFO finance glossary — alongside other fundraising concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about Vesting Acceleration (Single vs Double Trigger)?
- Beyond this definition, see the related fundraising terms below, or explore StartupCFO's insights and tools that put Vesting Acceleration (Single vs Double Trigger) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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