Business Pitch Dictionary by pitch.dog
Cap table, ownership & dilution · Working

Pool shuffle

Also called: option pool shuffle

ELI5

Existing owners absorb most of the new employee-share pool.

Used in conversation

“Model the pool shuffle before accepting the headline valuation.”

Definition

Informal venture term for increasing the option pool in a way that places much of the dilution on pre-money holders.

Here “Pool shuffle” means: Informal venture term for increasing the option pool in a way that places much of the dilution on pre-money holders.

Pitch context

You will see “Pool shuffle” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, 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.