Option Pool
Also called: ESOP pool, employee option pool, option pool shuffle
An option pool is shares reserved for future employee equity grants, typically 10–20% of the company. Where it's created in the cap table is a real negotiation: investors normally require it to come out of the pre-money valuation, so existing shareholders bear the dilution alone. That 'option pool shuffle' can quietly reduce an effective valuation by more than a price negotiation would have.