Founder Vesting Acceleration: Single Trigger vs Double Trigger Explained

Why Vesting Matters at All

• Founders typically issue themselves stock at incorporation, often with a 4-year reverse vesting schedule. If you leave (or are fired) before the cliff, the company can repurchase unvested shares.
• Vesting protects the company + investors: if a founder leaves after 6 months, they don't walk away with 50% of the company.
• At fundraising, institutional investors typically REQUIRE founder vesting if it isn't already in place. The vesting schedule + acceleration clauses get negotiated in the term sheet.
• By Series A: most founders have ~50% vested (assuming 2 years of cliff + linear), ~50% unvested. The remaining unvested portion becomes a 'forfeiture risk' if anything happens to the founder.