Option pool

An option pool is a number of shares of stock reserved for issuance to service providers of a company pursuant to options and other equity incentives.

Negotiating the Option Pool Blog Post

Many people think a high(er) valuation is the Holy Grail.  Those people are (often) wrong.  In pursuit of a high(er) valuation, founders often unwittingly give up valuable ownership percentage points…

Establishing the Ownership Culture: Stock vs Options Blog Post

Most startups offer equity participation in their company to people providing services to the company, whether as employees, consultants, advisors or otherwise (which we will call “service providers” in this…

Protecting Your Founder Equity Blog Post

You and your co-founders are getting your company off the ground. Everyone is excited and in perfect alignment. You have many people to be appreciative of as you launch your…

Fully Diluted Shares

“Fully diluted” shares are the total common shares of a company counting all currently issued and outstanding, plus shares that could be issued through the conversion of convertible preferred stock or through the exercise of outstanding options and warrants.