How big should a startup option pool be at pre-seed?
A standard option pool at pre-seed is around 10% (10-15%), created pre-money so it dilutes existing shareholders rather than the new investor. A 0% pool is unrealistic — investors require one — and over 20% over-dilutes founders. The pool funds equity for early hires.
What is option pool?
An option pool is a reserved chunk of equity for future employees. When created pre-money (the usual investor ask), it dilutes founders and existing holders before the new money comes in — the “pre-money pool shuffle”.
Option pool reference (pre-seed)
| Segment / stage | Healthy | Red flag |
|---|---|---|
| Standard | ~10% | — |
| Healthy range | 10-15% | — |
| Flag | — | 0% or > 20% |
These are reference ranges distilled from public SaaS metrics literature, read by stage — not our own measurement. Sources in the methodology.
How to handle the option pool
- Size the pool to your actual 12-18 month hiring plan, not a round number.
- Remember it is created pre-money — it dilutes you, not the investor.
- Model founder dilution including the pool before signing the term sheet.
FAQ
Who does the option pool dilute?
When created pre-money (the standard investor request), it dilutes founders and existing shareholders, not the incoming investor.
Is a bigger option pool better?
No. An oversized pool (>20%) just over-dilutes founders for equity that may never be granted. Size it to your real hiring plan.
Related tools
- Dilution Calculator — How much of my company do I give up in this round?
- SAFE Calculator — How much do you dilute with a post-money SAFE?
- See all: Fundraising & dilution
See where your numbers land.
Startkeel checks your option pool against these ranges and tells you if your SaaS holds up.
Last updated: June 25, 2026. Ranges based on Startkeel’s benchmark set for early-stage SaaS. For information only — not financial advice.