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Single-trigger acceleration

What is single-trigger acceleration?

Single-trigger acceleration is a provision in an employee's equity agreement that causes a portion or all of the employee's unvested shares to vest immediately upon a specific event, usually the sale of the company.

In more detail, this trigger event typically is a change of control, such as an acquisition, merger, or sale. The "single-trigger" refers to the fact that only this one event needs to happen for the vesting acceleration to occur. The purpose of such a provision is to protect employees in the event of a sale, ensuring they receive a fair share of the sale proceeds. As a founder, it's essential to understand these provisions as they can have significant implications for your employees and the overall equity distribution during a liquidity event.

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