Stock option pool sizing for startups: what to put on the cap table
How founders size a pool before a priced round, what diligence teams check, and how to keep option grants consistent with your capitalization table.
An option pool is a block of shares reserved for employees, advisors, and sometimes contractors. It is not “free” equity—it dilutes existing holders when authorized or increased.
Typical sizing signals
Early-stage companies often discuss pools in the 10–20% post-money range around a Series Seed or Series A, but the right number depends on hiring plans, advisor grants, and how much unallocated equity you want for future leaders. The goal is enough room to hire without reopening governance every quarter.
What belongs on the cap table
Your cap table should show authorized pool shares, granted options, and exercised positions separately from founders and investors. Vesting schedules and exercise prices should be traceable so finance and legal can reproduce ownership under a financing or exit.
409A and fair market value
CapTableFree does not perform 409A valuations. When you grant options, you still need a defensible fair market value from a qualified provider. We help you keep cap table records organized and export-ready so appraisers and counsel can work faster.
Self-serve operations
CapTableFree is built for teams that want to run equity day to day without platform fees: sign up, load stakeholders and rounds, invite collaborators, and share reports from one workspace.
Manage your cap table free
Unlimited shareholders, unlimited rounds, and self-serve onboarding. No credit card required.
Create free accountCapTableFree is free cap table management for founders who want professional records without per-seat pricing.