Resources for insight and
inspiration
Guides
Insights
Understanding Acceleration: Protecting Startup Talent Through Vesting Strategies
Acceleration is a mechanism in equity compensation that allows employees or founders to vest their stock options faster than the original schedule. It is most often triggered by significant events like a company acquisition. Acceleration ensures that key contributors are fairly compensated during major transitions and protects the value of their equity.
Vesting Schedules: The Strategic Foundation of Startup Equity Compensation
For both founders and employees, vesting schedules are more than a technical requirement. They are a strategic tool that determines how equity is earned, how long employees remain motivated, and how well a startup protects its ownership structure. A well-designed vesting schedule can strengthen retention, build loyalty, and align incentives between the company and its team.
Equity Incentive Plans / Equity Stock Option Plans
For startup founders, an option pool is more than a technical detail - it’s a strategic tool. The size, structure, and timing of your equity incentive plan can determine your ability to attract top talent, align incentives, and keep your company’s cap table clean for future investors.
Option Pools and Acquisitions: Navigating the Equity Landscape
When a startup is acquired, the treatment of its option pool becomes a critical factor for both founders and employees. Option pools influence retention, compensation, and how value is distributed during a merger or acquisition. Understanding what happens to these equity instruments helps founders negotiate better terms and employees make informed financial decisions.
FAQs
Open allTemplates are a starting point, but your TOS should be customized to your business model, user base, and compliance obligations.
TOS govern how users interact with your platform, while a Privacy Policy explains how you collect, use, and store their personal data.
Yes. Any business with a website, app, or platform should have TOS to set user expectations and limit liability.
Yes - if properly drafted and accepted (usually through clickwrap), TOS create an enforceable contract between you and your users.
Without one, state default laws govern the partnership. These rules may not align with your intentions and can lead to disputes.
Yes. Agreements should be reviewed and updated as the business grows or circumstances change.
Yes. As long as it’s properly drafted and executed, it sets enforceable rules for ownership, profit-sharing, and decision-making.
Yes. Even the strongest relationships benefit from clear rules. A written agreement prevents misunderstandings and protects both parties if circumstances change.
When the relationship involves money, intellectual property, or liability risk, you should transition from an MOU to a formal agreement.
Courts may enforce MOUs if they look like contracts—for example, if they include payment terms or obligations. To avoid confusion, clearly state whether the MOU is binding.
Contracts create enforceable obligations. MOUs generally outline intentions and expectations but stop short of legal enforceability.
Most MOUs are not legally binding, but they can include binding provisions if clearly stated, such as confidentiality or exclusivity.
Overcommitting - such as granting long exclusivity or including too much detail - can lock you into unfavorable terms before negotiations are complete.
Yes, unless you are bound by specific provisions. However, backing out without good reason may damage future relationships.
LOIs outline deal terms upfront, giving both sides confidence before investing in due diligence and full contract drafting.
Most of an LOI is non-binding, but certain provisions like confidentiality and exclusivity are enforceable.
If you handle personal data, a DPA ensures compliance with GDPR, CCPA, and similar laws. Many enterprise clients require it before signing.
Usually the customer, though the provider may retain limited rights to use the data for service delivery, analytics, or improvements.
Yes, especially in B2B deals. SLAs provide uptime guarantees and remedies for service failures, which are critical for enterprise customers.
Traditional licenses transfer a copy of the software, while SaaS Agreements grant access to use the software as a service without ownership.