Double Trigger on Option [Vesting] Acceleration – Meaning and Importance

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Share or option vesting is a retention mechanism, intended to secure the engagement of founders, employees, and advisors, over time or when hitting certain milestones. Vesting allows equity grantees to earn their share over a period of time, or when achieving certain milestones.  On the other hand, vesting acceleration allows founders, employees and advisors to … Read more Double Trigger on Option [Vesting] Acceleration – Meaning and Importance

Liquidation Preference: Meaning and difference between “participating” and “non-participating” liquidation preference

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Investors purchasing preferred stock, usually demand to have a liquidity preference mechanism, whereby their purchased stock is being cashed out on preferred terms, in the event of an M&A, or liquidation of the Company. Preference provisions serve as a hybrid mechanism, combining equity and debt concepts. Although preferred shares are, at the end of the … Read more Liquidation Preference: Meaning and difference between “participating” and “non-participating” liquidation preference