Acceleration

How it works

Standard founder/executive packages include double-trigger acceleration: if the company gets acquired AND the executive is fired without cause within 12 months, their unvested shares immediately vest. Single-trigger (acceleration on acquisition alone) is harder to get and reserved for founders. Investors prefer double-trigger because it keeps the acquired team in place.

Related terms

• Vesting (and the cliff)
  Vesting is the schedule on which an employee earns their granted shares — most commonly 4 years with a 1-year cliff, meaning no shares vest until 12 months in, then monthly thereafter.
• Term sheet
  A term sheet is a non-binding document outlining the key terms of a proposed investment — valuation, amount, board seats, liquidation preference, anti-dilution, and other rights.