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% |
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.
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.