Acceleration (Single Trigger)

Also called: Single-trigger acceleration

TL;DR

A vesting acceleration provision where unvested equity vests automatically on a single triggering event, typically a change of control.

Single-trigger acceleration vests some or all unvested equity on a single event, usually the company being acquired. Founders sometimes negotiate single trigger because acquirers often replace the team, single trigger ensures the founders are made whole at the acquisition without depending on the acquirer's retention plans.

Acquirers dislike single trigger because it removes retention leverage. It's more common in founder grants than in employee grants, and is often a contested term in late-stage and acquihire negotiations.

Worked example

A founder with 3 of 4 years vested has single-trigger acceleration on change of control. The company is acquired before year 4, the remaining 25% immediately vests at close, regardless of whether the founder stays at the acquirer.

Common pitfalls

•Negotiating single trigger so broadly that small commercial events trigger acceleration.
•Failing to coordinate single trigger with later round terms.
•Underestimating how single trigger affects acquisition price.

When this shows up in a pitch deck

Diligence and acquisition-negotiation content; not on the deck.

Related terms

Acceleration (Double Trigger)

A vesting acceleration provision requiring two events, typically a change of control AND involuntary termination, before unvested equity vests.

Vesting

The schedule by which equity grants are earned over time, typically 4 years with a 1-year cliff for founders, employees, and advisors.

Founder Vesting

A vesting schedule applied to founder equity, typically required by VC investors to align founders with the long-term outcome.

Term Sheet

A non-binding document outlining the principal terms of a proposed financing, used to align investor and founder before legal documents are drafted.

Acquihire

An acquisition primarily motivated by the acquirer's desire to hire the target company's team, with little value placed on the product or revenue.

Use Acceleration (Single Trigger) in your next pitch deck

Deckmetric scores your pitch across 10 VC frameworks and against 8 investor types.