Option pool / ESOP
Also: ESOP; Employee Share Option Plan
Equity set aside to grant to employees as options, usually 10–15% of the company.
Investors often want the pool topped up pre-money, so founders effectively bear that dilution — negotiate the size.
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Vesting / cliff
Equity is earned over time (vesting); a cliff is an initial period you must pass before any of it is yours.
Dilution
The drop in your ownership percentage each time the company issues new shares.
ESS (Employee Share Scheme)
The Australian framework for giving staff equity, with specific tax rules for startups.
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