The Option Pool Shuffle | How to Raise Venture Capital - SaaStr AI University
The option pool is the most common piece of hidden dilution in a term sheet, and it almost always comes out of your pocket, not the new investor's.
The Option Pool Shuffle - a free lesson in How to Raise Venture Capital at SaaStr AI University. The option pool is the most common piece of hidden dilution in a term sheet, and it almost always comes out of your pocket, not the new investor's. Key takeaways: • A pre-money option pool dilutes founders, not new investors. It is dilution disguised as a term. • Negotiate a smaller pool with the right to top up only as you hire, rather than a large pool created upfront. • Size the pool to your real 12 to 18 month hiring plan, not a round number an investor suggests. Part of the free, self-paced How to Raise Venture Capital course: https://saastr.ai/university/raise-venture-capital