Acceleration (Equity Acceleration)

Advanced 🚀 Startup / VC

Definition

A clause that speeds up your equity vesting if certain events happen, like acquisition or being fired without cause. It's supposed to protect you but usually just makes the acquisition price higher.

Example Usage

My employment agreement includes single-trigger acceleration, so my remaining equity vests immediately if we're acquired.

Origin

Startup employment agreement terminology

Fun Fact

Single-trigger acceleration is controversial because it can cause founders to get lazy after acquisition—they're already paid, so why keep working?

Source: Startup Equity Standards, employment law

Related Terms

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