Option pool shuffle
In accounting, option pool shuffle means sizing a round's new option pool as a percentage of the post-money but creating it in the pre-money, so its cost falls on existing holders and the effective pre-money is the headline pre-money less the new pool's value.
Not a rule. Venture practice — not codified. US GAAP governs recognition, measurement and presentation, not bookkeeping mechanics. Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- dilution alone
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
13Metrics & analysis
Family specAlso in Equity & financing
Defined in Lexicon. This page is generated from that document, so the two can't disagree.