Option pools and ESOP planning

Sizing the pool

Size the pool from your actual hiring plan for the next eighteen months, not from a round number. Build the plan role by role with a target grant for each, then add a modest buffer.

Timing

Investors usually ask for the pool to be created pre-money. That is a negotiation, not a law. Bringing a credible hiring plan to the table is the most effective way to argue for a smaller pool.

Vesting

Four years with a one-year cliff remains the market default. Deviations should be deliberate and documented.

Ongoing management

Refresh grants for key people before the pool runs dry; topping up mid-round is more expensive than planning for it.