Startup Investing

Employee Stock Option Pool

Definition

What is Employee Stock Option Pool?

Shares or options reserved for current and future employees.

Example in practice

The company creates a 10% option pool before the investment round.

Keep learning

A preliminary document outlining the main commercial terms of a proposed investment.

A company's agreed value immediately before a new investment.

A company's value immediately after adding new investment capital.

The rate at which a company spends cash, commonly measured monthly.

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