Option Pool
Shares set aside to grant employees. Usually created (and dilutes founders) before a priced round.
Why it matters
Investors often require it pre-money, so founders bear the dilution — negotiate the size.
Related terms
Valuation (Pre / Post-money)
What your company is worth in a round. Pre-money is before the new investment; post-money adds it in.
Dilution
The reduction in your ownership percentage when new shares are issued (a raise, an option pool).
SAFE (SAFE)
Simple Agreement for Future Equity — a fast way to raise early money that converts to shares at your next priced round.
Cap Table
The spreadsheet of who owns what — founders, investors, employees (the option pool).