Glossary · Employee equity
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.