Free calculator
ESOP sizing calculator: the option pool your hiring plan needs
Investors often ask for a 15 or 20 percent pool before the round. Build the number from your 18-month hiring plan instead and negotiate with evidence: the calculator shows the pool you need, the top-up and its cost to founders.
Why the pool is a valuation question
An option pool created before the round comes entirely out of the existing shareholders. A $10M pre-money valuation with a 20 percent pool is effectively an $8M valuation for founders. The pool size is one of the few terms that moves the real price without touching the headline number.
How to size it from the plan
List the roles for the next 18 months, how many of each, and the equity each hire typically receives: a VP 0.5 to 1.5 percent, a senior engineer 0.1 to 0.5 percent, early employees more. Add a buffer of 10 to 20 percent for refreshes and surprises. That total, minus unallocated options you already have, is the top-up.
Typical ranges
Seed-stage pools usually land between 8 and 15 percent post-round. A 20 percent request with no hiring plan behind it is a negotiation tactic, not a requirement. Investors generally accept a smaller pool if the plan is specific.
Negotiating the top-up
Show the plan, propose the number, and ask that any pool beyond the plan be created post-money so new and old shareholders share the dilution. Use the cap table simulator to see what the difference is worth.
Questions founders ask
Should the pool be pre- or post-money?
Pre-money is the usual ask. Post-money shares the dilution with the new investors, which is better for founders. Model both.
What if we already have a pool?
Enter the unallocated portion. Allocated options are already in the cap table and do not need a top-up.
Do advisors come out of the pool?
Usually yes. Add them as a row, typically 0.1 to 0.5 percent each.
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The calculator shows the math. SeedScope shows the number investors will use.
Founder Starter is free, no card needed: your startup score, a risk assessment and a summary, with your profile visible to investors. Founder Pro, from $39 a month, opens the full valuation with exit odds, returns and a written analysis, refreshed every week, plus the investors matched to you by name.