Day 30: Single vs Double Trigger
What happens at the time of a sale is crucial information to have in any vesting scheme. The simplest solution is for all shares to become fully vested at the time of sale. The term “single trigger” is also used to describe this situation.
The alternative is to have the founder’s shares vest if and only if he or she leaves the company in good standing after a certain amount of time has passed (e.g. 12 months). Double trigger describes this situation.
A double trigger is preferable to a single trigger, but both have their uses for a founder. When considering purchasing your business, a buyer will likely want some assurance that you will remain in your role at least through the integration process. Due to this, it is not unusual for founders to give up their one and only trigger at the time of the deal.