how option pools are structured
the shares that comprise an option pool typically are drawn from founder stock in the company rather than the shares earmarked for investors this may be 15 25 of the overall outstanding shares and may be determined when the startup receives its earliest funding round as part of the overall terms put in place it is also possible that a company over the course of its development and subsequent funding rounds may establish additional option pools after the initial one is put in place the size of the pool may be dictated or advised by the venture backers to be a portion of the pre money or post money valuation of the company negotiations over the scope of the option pool can affect the startup s overall price for example investors may want an option pool offered post money option to be priced at the pre money valuation which could lower the price for the company other considerationsthe shares disbursed from the option pool may be determined by the roles of the employees as well as when they are hired for example senior management that is brought on board near the founding of the startup may receive a percentage of the entire pool whereas later employees in more junior roles might be granted just fractions of a percent the option pool grants shares that like other types of stock options often require a period of time before they are vested this means the employee will not be able to benefit from these shares possibly for several years by delaying their ability to reap monetary value from their portion of the option pool the belief is that the employee will contribute more to the overall health and growth of the company in order to see the greatest possible gains when the shares vest 