Option Pool Expansion Calculator

Investors mandate that an unallocated option pool (usually 10-15%) exists in the post-money capitalization, but require it to be carved out of the pre-money shares. This means founders take all the dilution.

Effective Pre-Money Valuation (After Pool Carveout): $8,125,000
Founder takes 100% of the pool dilution.

Why this matters

If you agree to a 20% pool when you only plan to hire enough people to use 10%, you have given away 10% of your company for free. The size of the pool should be based on a concrete hiring plan.