5 ms·
Most startups use double trigger acceleration for vesting. The first trigger was the acquisition and the second was the termination (not offered a position).
by kevinastone 10y ago
Most startups use double trigger acceleration for vesting. The first trigger was the acquisition and the second was the termination (not offered a position). So they would vest their entire equity grant.
Of course that implies that the equity is worth anything. Most acquihires are at low multiples so the VCs tend to take the entire price, leaving founders and employees with nothing.
- mljoe 10y agoEven in low multiples typically the VCs creates a decent incentive for the founders to stay at the acquired company (otherwise the acquihire will fail), but they aren't getting filthy rich.
- nihonde 10y agoI like to get a right of first refusal for cofounder share sales so I can block low valuations in an acquihire where you're not getting hired.
- URSpider94 10y agoI would be curious about "most". My n=1 experience didn't have acceleration terms. In fact, all of my remaining unvested ISO's vanished at acquisition ...
- shostack 10y agoInteresting. And I assume that there's a lot of fudge room on the valuation as well with more of it being shifted towards hiring bonuses for those kept on?