medium · Private Equity & LBOs

In a growth equity cap table, Founders hold 1,000,000 shares. Round 1 issues 1,000,000 shares at $2.00 per share. An option pool of 500,000 shares is subsequently created.

What is the Founders' fully-diluted ownership percentage after the option pool is created?

  1. 25.0%
  2. 33.3%
  3. 40.0%
  4. 50.0%

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