An option pool is the block of startup equity reserved (but not granted) for stock options to current and future employees, advisors, and consultants. It is sized as a percentage of fully diluted shares and replenished at most priced rounds. It's created on the cap table as authorized-but-unissued shares within the [Equity Incentive Plan], and grants are pulled from it over time as the company hires.
Typical pool sizes by stage (2025 Carta and PitchBook benchmarks):
| Stage | Pool size (% of post-money) | What it has to cover |
|---|---|---|
| Pre-incorporation / formation | 10-15% | Founders + first 5-10 employees |
| Post pre-seed (SAFE) | 10-15% | First 10-15 hires |
| Post priced seed | 12-18% | Engineering team build-out, first sales hires |
| Post Series A | ...