Funding and ownership
Option pool
The shares set aside for employee share options. Investors often require it to be created or topped up before they invest.
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You'll hear it as
They want a 10 per cent option pool before the Series A.
Why it matters to you.
Topping up the pool before a round dilutes existing holders, including staff, not the new investors.
Also called ESOP.
Related terms.
Videos.
No video mentions Option pool by name yet. These are on the same topic, Business & startups.