acceleration clause

Definition

A provision that speeds up the vesting of unvested equity upon specific events like acquisition or termination. It's the golden parachute for startup employees who might otherwise get screwed by good news.

Example Usage

Thanks to the single-trigger acceleration clause, all my unvested options became immediately exercisable when we got acquired.

Origin

Evolved from executive compensation practices in the 1980s-90s, adapted to startup equity structures.

Fun Fact

Single-trigger acceleration (upon acquisition) is generally seen as reckless; double-trigger (acquisition plus termination) is the standard in well-advised companies.

Source: Silicon Valley compensation consulting standards

Related Terms

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Intermediate

proprietary deal

An investment opportunity sourced exclusively by one firm rather than through competitive process. The venture capital equivalent of finding $20 in your coat pocket—rare, lucky, and probably won't happen again.

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Beginner

lead investor

The VC firm that sets the terms and does the heavy lifting in a funding round, while other investors gratefully follow along. Someone has to negotiate while everyone else free-rides.

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Intermediate

unfair advantage

A structural competitive edge that's difficult or impossible for competitors to replicate, like proprietary technology, exclusive partnerships, or regulatory capture. What founders claim to have and what actually exists rarely overlap perfectly.

🚀 Startup / VC

Beginner

Wantrepreneur

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🚀 Startup / VC

Advanced

Blitzscaling

The strategy of growing a company at breakneck speed while intentionally ignoring efficiency, profitability, and the screams of your finance team. It's named after the German military tactic because both involve advancing recklessly and hoping the supply lines hold.

🚀 Startup / VC

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