Learn the Basics Glossary Acceleration (Vesting)
Equity

Acceleration (Vesting)

A provision that causes unvested equity to vest immediately upon a specific event, typically an acquisition.

Acceleration is a provision in a vesting agreement that causes some or all unvested equity to vest immediately when a specified trigger event occurs. The most common trigger is an acquisition — if the company is acquired, acceleration protects founders and employees from losing unvested equity because the acquirer might terminate them after the deal closes.

There are two types. Single-trigger acceleration vests equity automatically upon an acquisition, regardless of what happens to the employee afterward. Double-trigger acceleration requires two events to happen: an acquisition, and then the employee being terminated or constructively forced out within a specified period (typically six to twelve months). Double-trigger is more common because single-trigger can actually discourage acquisitions by making them more expensive.

Not every vesting agreement includes acceleration. Founders sometimes negotiate single-trigger acceleration for themselves, while employees typically receive double-trigger. If you're negotiating an offer or setting up vesting for your team, it's worth understanding which provisions are included and what happens to your unvested equity if the company is sold.

Where This Appears in Takeoff

← Back to Glossary