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Option pool

A chunk of shares set aside to hire people with stock options. Investors often want a pool created or enlarged before they invest so future hires do not dilute only them.

Related: Stock options · Cap table · Dilution

A bit more nuance
  • The “option pool shuffle” means expanding the pool before a round — it can dilute founders pre-money.
  • Too small a pool makes hiring hard; too large wastes founder ownership.
Go deeper
Discussion questions
  • How many key hires do you need before the next round?
  • What grant size would excite a great engineer in your city?

Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.