Glossary

Option pool

Shares reserved for future employees, usually 8 to 15 percent after a seed round.

Investors often require the pool to be created before the round so it dilutes founders only. Size it from a hiring plan rather than accepting a round number.

Related free tool

Learn the words, then get the score.

A free Founder Starter account gives you SeedScope’s startup score, a risk assessment and a summary, and puts your profile in front of investors. Founder Pro adds the full valuation, exit odds and the investors who viewed you, by name.