Concept

Option pool

The option pool is equity reserved for employees and advisors. Investors often require a larger pool before the round closes, which dilutes founders on a pre-money basis. Size the pool to a real hiring plan — not a round number that looks 'market.'

Where founders get this wrong

• Accepting a pre-money pool shuffle without modeling founder ownership after the refresh.
• Building a 20% pool with no 18-month hiring plan that actually spends it.
• Granting advisor and early-hire equity ad hoc outside pool bands and vesting norms.