Option Pool Shuffle

Option Pool Shuffle

The option pool - the amount of options to be allocated to future employees - lowers your effective valuation.

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Edits on 17 January, 2020
Golden AI"Attach Wikidata entity ID"
Golden AI edited on 17 January, 2020 10:34 pm
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Edits on 7 August, 2018
Golden AI"Linkify text links in standard tables"
Golden AI edited on 7 August, 2018 7:00 pm
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Further reading

Author
Title
Link
Type

Babak Nivi

The Option Pool Shuffle

http://venturehacks.com/articles/option-pool-shufflehttp://venturehacks.com/articles/option-pool-shuffle

Fred Wilson

Valuation and Option Pool

http://avc.com/2009/11/valuation-and-option-pool/http://avc.com/2009/11/valuation-and-option-pool/

Edits on 29 November, 2017
Alex Dean"moving part of the long abstract into the body of the article"
Alex Dean edited on 29 November, 2017 8:04 pm
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Option Pool Shuffle

The option pool - the amount of options to be allocated to future employees - lowers your effective valuation. E.g. your effective pre-money valuation is not $8M but $6M, if 25% of the $8M is allocated to new options. The option pool only affects common stock. VH recommends using a hiring plan to determine what the appropriate size of an option pool should be.

The option pool - the amount of options to be allocated to future employees - lowers your effective valuation.

Article

Introduction

E.g. your effective pre-money valuation is not $8M but $6M, if 25% of the $8M is allocated to new options. The option pool only affects common stock. VH recommends using a hiring plan to determine what the appropriate size of an option pool should be.

Further reading

Author
Title
Link

Babak Nivi

The Option Pool Shuffle

http://venturehacks.com/articles/option-pool-shuffle

Fred Wilson

Valuation and Option Pool

http://avc.com/2009/11/valuation-and-option-pool/

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Edits on 1 January, 2017
Golden AI"Initial topic creation"
Golden AI created this topic on 1 January, 2017 12:00 am
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 Option Pool Shuffle

The option pool - the amount of options to be allocated to future employees - lowers your effective valuation. E.g. your effective pre-money valuation is not $8M but $6M, if 25% of the $8M is allocated to new options. The option pool only affects common stock. VH recommends using a hiring plan to determine what the appropriate size of an option pool should be.

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