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ESOPSTARTUPY
StartupsFrom idea to funding round and exit

ESOP

Employee Stock Option Plan

A pool of shares set aside to compensate employees with stock options — giving them ownership in the company instead of higher salaries.

Why it matters

Enables hiring talent you can’t afford in cash yet, and aligns employees with the company’s success.

What's missing without it

Without an option pool, it’s hard to compete for top talent against companies paying twice as much.

When it is used

When founding a company and before the first major funding round.

How we use it

Typically 10% of post-investment valuation, with rights vesting over 4 years and a 1-year cliff.

Fun fact

A typical pool is 5–15%. Investors often require it before a round, meaning it dilutes only founders — few notice this on first reading.

Numbers worth knowing

Startups in data

26%

Prognozowany udział w pełni elektrycznych pojazdów (BEV, bez hybryd) w europejskim parku samochodowym do 2035 roku, w porównaniu z 4% w 2025 r.

BCG2035Europe

1.7%

Prognozowany średnioroczny wzrost (CAGR) europejskiego rynku aftermarket do 2035 roku.

BCG2024Europe

116 000 000 000 EUR

Prognozowana wartość europejskiego rynku aftermarket w 2035 roku, w porównaniu z 99 mld EUR w 2025 r. (na poziomie hurtowym, bez robocizny).

BCG2035Europe

Figures from the same field — collected in our market data base.

Related terms