Since a startup’s incentive equity pool 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.