In: Finance
Assume the company has a stock option pool representing 15% of the total number of shares. The options vest in 5 years. How many shares of the company should the VC ask for today to avoid dilution of her ownership?
Ans:
Stock Option pool representing Employee stock options i.e here 15% of Total shares.vesting period of Stock Options is 5 years i.e the Stock Options are affected after 5 years after Satisfying the terms and conditions of the Management so as of today VC don't need to ask any shares to avoid the Dilution of her ownership