--- title: Blog | Outside GC | incentive equity pool description: incentive equity pool | The Outside GC blog features practical tips, insights, and other news from Outside GC's experienced on-demand attorneys. Read our latest blog posts here. --- [![logo-small.png](https://62401.hs-sites.com/hs-fs/hubfs/Outside_GC_May_2015/Logos/logo-small.png?width=90&name=logo-small.png "logo-small.png")](http://www.outsidegc.com) - BLOG - ** --- ### Headquarters 501 Boylston Street, 10th Floor Boston, MA 02116 (617)-737-5000 info@outsidegc.com ![hero_news-events.jpg](https://62401.hs-sites.com/hs-fs/hubfs/Outside_GC_May_2015/Backgrounds/hero_news-events.jpg?width=1600&name=hero_news-events.jpg "hero_news-events.jpg") ## ON-DEMAND INSIGHTS [![Impact of Incentive Equity Pools on Startup Fundraising](https://62401.hs-sites.com/hubfs/iStock-546200366-1.jpg) ](https://62401.hs-sites.com/blog/impact-of-incentive-equity-pools-on-startup-fundraising-outside-gc) ## [Impact of Incentive Equity Pools on Startup Fundraising](https://62401.hs-sites.com/blog/impact-of-incentive-equity-pools-on-startup-fundraising-outside-gc) December 22, 2022 at 8:46 AM - [startups](https://62401.hs-sites.com/blog/topic/startups), Since a startup’s [incentive equity pool](https://62401.hs-sites.com/blog/incentive-equity-plans-and-startup-fundraising-outside-gc) will interact with and have an impact on the pricing and dilutive effect of its equity fundraising rounds, it is important that founders understand how an incentive equity pool may impact their fundraising efforts. Like founders themselves, investors in early stage companies understand the necessity of using incentive equity to attract and align interests of employees and other service providers with the interests of founders and investors in the long term growth of the company’s value. In fact, if a pool has not previously been established at the time of a startup’s initial priced equity fundraising round, the investors in that round will likely require its creation as a condition of the investment. [Continue Reading](https://62401.hs-sites.com/blog/impact-of-incentive-equity-pools-on-startup-fundraising-outside-gc) [![Incentive Equity Plans and Startup Fundraising](https://62401.hs-sites.com/hubfs/iStock-546200366.jpg) ](https://62401.hs-sites.com/blog/incentive-equity-plans-and-startup-fundraising-outside-gc) ## [Incentive Equity Plans and Startup Fundraising](https://62401.hs-sites.com/blog/incentive-equity-plans-and-startup-fundraising-outside-gc) December 20, 2022 at 11:14 AM - [startups](https://62401.hs-sites.com/blog/topic/startups), In most startup companies, with cash in limited supply and a relatively high risk that the venture will fail, it can be difficult to recruit top talent as employees and advisors. Incentive equity grants provide a solution to this problem, serving as both a substitute for the higher cash compensation that an employee or service provider might receive working for a larger or later-stage venture and/or a means of rewarding the risk associated with early stage ventures. 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