Fundraising & Equity
Founder Vesting Acceleration: Single Trigger vs Double Trigger Explained
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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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.
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