SaaS & Startupadvanced
ESOP
Employee Share Option Pool
Definition
A set-aside slice of company shares reserved to give to employees as options, rewarding them for joining early and helping the business grow.
Why it matters
An option pool helps you attract talent you could not otherwise afford in cash, but it dilutes the founders, so its size is a key point in any funding round.
Example
You ring-fence 10% of your company as an option pool so your first three hires each get a share of the upside.
Related terms
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