Venture Deals · glossary
Counting a new option pool inside the pre-money valuation, so the existing holders pay for it rather than the new investors. At the Series A the founders’ block bore about two-thirds of the cost. Chapter 7
Explained in Chapter 7, Pricing the Round: Pre-Money, Post-Money and the Option Pool, of Venture Deals.
At Solaris the new pool was counted before the new money. The pool shares sat inside the pre-money count, not on top of the shares the new money bought. The market calls this the pool shuffle. It means that the people who owned the company before the round pay for the pool, not the investors writing the cheque.Read Chapter 7, Pricing the Round: Pre-Money, Post-Money and the Option Pool →
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