photo credit: woodleywonderworks
Option pool can be described as the amount of a startup’s common stock reserved for employees, directors, advisors, and consultants. The stock reserved is then issued to the aforementioned stakeholders. It is through a written plan a startup pre-authorizes the amount of the company’s common stock which will be issued by the administrator (usually the startup’s board of directors or a committee selected by the board). A startup, for example, can have 5,000,000 shares of common stock but only elect to authorize 2,000,000 shares.
A startup’s original option pool may not likely turn out to be the last option pool the startup creates. The size of the pool should be discussed at each round of funding and financing, since at that time, the startup might need more equity options to attract and motivate future hiring.
The confusing part of an option pool is how the option pool’s non-issued or unissued portion is treated.
We suggest you read this post for a detailed insight into Option Pool Shuffling
Summary: Don’t let your investors determine the size of the option pool for you. Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation.
photo credit: JohnSeb
Lucid Imagination – the startup launched in 2009 which distributes Apache Lucene and Apache Solr search technology announced that it has raised $10 million in venture capital funding (completes its Series B round) with existing investors Granite Ventures and Walden International and new participation from Shasta Ventures.
The startup is the commercial entity for Lucene/Solr and it offers a broad portfolio of software and service solutions. It offers differentiated search for organizations across a wide range of sectors including Web 2.0, media, telecommunications, government etc. Its customers include Nike, Ford, Zappos, eBay, Ford, Cisco and many others.
Funding will be used to accelerate readiness and adoption of Lucene/Solr search technology. It had a total funding of $6 million before this and after this deal the company’s total funding comes up to $16 million.
A startup which is in its second year is seeing revenue in millions and counts Google’s enterprise search as its direct competitor.
This is definitely great news! Congratulations to Lucid Imagination. A good source of motivation and inspiration for startups
You can visit TechCrunch for a detailed description:
the startup that commercially distributes the open source Apache Lucene and Apache Solr search technology, has raised $10 million in Series B funding from