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

Reserved shares

Also called: share reserve

ELI5

Shares kept available for future grants or transactions.

Used in conversation

“The cap table includes reserved shares for the option pool.”

Definition

Shares set aside for a stated purpose, such as an employee option plan, but not necessarily issued.

Here “Reserved shares” means: Shares set aside for a stated purpose, such as an employee option plan, but not necessarily issued.

Pitch context

You will see “Reserved shares” 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.

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Sources & evidence · 5

Direct term-level sources and supporting source families.