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Option pool

/ˈɒpʃən puːl/

An option pool is an equity incentive for early investors or employees of a startup.

It is used to attract investors or talent without which the company would have a hard time growing. 

Option pool is typically between 10-20% of the stock of the company and shares are divided based on how early one joins the company or what their role would be. 

Option pools allow companies to attract top talent, offer an incentive other than money and ensure employees work hard on their journey to make the company go public.