PART 7: How Much ESOP Pool Is Normal?
When founders decide to introduce an ESOP (Employee Stock Option Plan), the next important question is how much of the company should be reserved for employees.
In most early-stage startups, a 5–10% ESOP pool is considered normal.
This means the founders set …
PART 7: How Much ESOP Pool Is Normal?
When founders decide to introduce an ESOP (Employee Stock Option Plan), the next important question is how much of the company should be reserved for employees.
In most early-stage startups, a 5–10% ESOP pool is considered normal.
This means the founders set aside 5–10% of the company’s total equity specifically for current and future employees.
This pool is created before hiring many team members, so that the company already has equity available to rewar