Saturday, November 27, 2010

Option pool mix for startups

Option pool can be described as the amount of a startup's common shares reserved for employees, directors, consultants and advisers. The reserved stock is issued to the above actors.It is a written plan a start the amount of ordinary shares of the company's pre authorizes by the administrator (usually the startup's Board business and/or supervisory board or of a Committee by the Board of Directors selected) spent wird.Ein startup, can for example, have 5,000,000 shares of common stock but only selects 2,000,000 shares to authorize.


A startup's original option pool not likely may be the last option pool at startup erstellt.Die pool size should be discussed at each round of funding and financing, because at that time the start more options to attract and motivate future setting might need.


The confusing part is how the option pool non-issued an option pool or subscribed part is handled.


We suggest that you read this post for a closer look into the option pool mix



Summary: Do not leave your investors that the size of the option pool to bestimmen.Verwenden a setting plan to justify a small option pool your stock price and increase your effective evaluation.


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