Document the approved increase
Keep board and shareholder approvals when required, plan amendments, authorized-share analysis, old pool size, new pool size, shares already granted, remaining reserve, and effective date.
If the expansion occurs during a financing, preserve the term-sheet and closing calculations showing whether the increase is treated pre-money or post-money.
Reconcile every equity system
The legal equity plan, cap table platform, grant register, board records, and financing model should show the same reserve after the change.
Do not leave stale pool numbers in investor models or hiring plans.
Connect the pool to hiring plans
Management can compare remaining grant capacity with expected hiring, refresh grants, and compensation strategy. That turns the pool from an abstract dilution number into a workforce planning input.
A clear pool roll-forward also makes later board approvals and financing diligence much easier.
Questions buyers usually ask
Does expanding an option pool mean shares are immediately issued?
No. It generally increases the number of shares reserved for future grants, while actual issuance occurs under later grants or exercises.
Why does option pool expansion affect dilution?
Fully diluted ownership calculations often include reserved option shares, so a larger pool can reduce existing holders' fully diluted percentages depending on the financing structure.
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