The Investor Option Pool: Why Valuation Matters More Than Share Size
In our last piece, we looked at how the founder share of a company’s option pool shrinks as valuations rise — and what that actually means in dollar terms. This week, we’re looking at the investor option pool: what that growth actually means, and why the dynamics of the investor pool are fundamentally different from […]
The Option Pool Paradox: Why Higher Valuations Don’t Always Pay Off
We’re taking last week’s analysis one step further: what do those different option pool sizes actually mean in dollar terms? The short answer is that a higher valuation doesn’t automatically translate into a better outcome for founders. A smaller slice of a bigger pie can — and sometimes does — mean less money in your […]