Option pool shuffle calculator
Enter a term sheet's pre-money valuation and pool size. See the real price per share and the effective pre-money valuation.
Calculator
The option pool shuffle
Size the new option pool, then move it between the pre-money and the post-money. Watch who pays for it.
Where the term sheet puts the new pool
- Price per share
- $1.00
- Headline: $8M ÷ 6,000,000 = $1.3333
- Effective pre-money
- $6M
- Headline: $8M
- Founders own
- 60%
- 64% with the pool in the post-money
Ownership after the round, pool in the pre-money
- Founders
- Option pool
- New investors
The headline pre-money is $8M, but the new pool takes $2M of it, which is 25%. Thus the shares that exist today get $1.00 each, not $1.3333: an effective pre-money of $6M.
The new investors still get 20%. The founders pay for all the new pool shares and own 60%, 4 points less than with the pool in the post-money.