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Consider a company founded with 1m shares of common equity, split amongst the founders. A year later the company raises $5M of Series A funding

Consider a company founded with 1m shares of common equity, split amongst the founders. A year later the company raises $5M of Series A funding at a $10M pre-money valuation. After the money has gone into the firm, they establish an option pool of 20% of post-money shares outstanding. Approximately how many options are in the option pool?

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