OCV Public Handbook/🏢Company Formation/📄Step 5: Establish the company’s options pool

Step 5: Establish the company’s options pool

Each company will establish an options pool for employee equity grants. The size of the initial pool depends on the Day 1 team composition of the company. To prevent unintended dilution prior to the next capital raise, our goal is to reserve a sufficient allocation for all required hires (including executive roles).
Typical size of options pool at an OCV company is 20%, consisting of ~10% for future CEO reserve and rest for employees.
Following conventional venture practice, options pool will reset with each additional round of financing. Size of new options pool at Seed round depends on founding team, future investor, and OCV inputs. See additional notes at Seed round options pool.