Option pool / ESOP
Also: ESOP; Employee Share Option Plan
Equity set aside to grant to employees as options, usually 10–15% of the company.
Investors often want the pool topped up pre-money, so founders effectively bear that dilution — negotiate the size.
Hear it from people who've done it
Get the real-world version of "Option pool / ESOP" drawn from hundreds of conversations with founders and investors.
Ask the Network →Episodes on Hiring & Team
Building Tech Teams with James MacDonald · 19 August 2026
Why "The Number Is Never the Problem": Matt McFarlane, Founder of FNDN
Building Tech Teams with James MacDonald · 11 August 2026
Why "Show Me Your Harness" Beats Any Coding Test: Adam Witanowski, AI Architect
Building Tech Teams with James MacDonald · 4 August 2026
The Junior Engineer Isn’t Needed Anymore: Cloë Stanbridge, Talent Lead at Airtree
Vesting / cliff
Equity is earned over time (vesting); a cliff is an initial period you must pass before any of it is yours.
Dilution
The drop in your ownership percentage each time the company issues new shares.
ESS (Employee Share Scheme)
The Australian framework for giving staff equity, with specific tax rules for startups.
Cap table
The ledger of who owns what — every shareholder, their share class and their percentage.
Fully diluted
The share count assuming every option, SAFE and convertible has been exercised and converted.
← Back to the full glossary
Want a show like this for your fund or company?
We're W2D1 Media — the team behind the Day One Network and Blackbird's Wild Hearts. We turn podcasts into trust, authority and pipeline.