Business Pitch Dictionary by pitch.dog
Founder & employee equity · Core

Option grant

Also called: grant

ELI5

The company gives someone the right to buy a set number of shares.

Used in conversation

“The board approved the option grant.”

Definition

The formal award of a specified number of stock options under an equity plan.

Here “Option grant” means: The formal award of a specified number of stock options under an equity plan.

Pitch context

You will see “Option grant” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.