Kupor: VCs use "made up numbers" to size startup option pools
Scott Kupor · The Economics of Term Sheets · Jun 23, 2019 · at 15:20
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Scott Kupor, Managing Partner at Andreessen Horowitz, explains how venture capitalists determine required option pool sizes during startup term sheet negotiations.
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“In some respects, these are kind of made up numbers by the venture capitalists, ah, but the kind of heuristic that venture capitalists often use to determine what size they want Is they're trying to say, look, when I invest in this company, I want this option pool to be able to last you for all the hiring that you're going to do for at least until the next round of financing comes in.”
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