Disagree. Founders are heavily incentivized to minimize this at the time of funding since dilution hurts most pre not post valuation. Founders will absolutely expand this as needed to hire top-tier talent. I don’t think this is a strong correlation with being short-sighted.
Also, if it’s so important maybe VCs should be a true partner and take the post dilution hit with the founders.
They won’t because they can’t guarantee their % stake. What calculation do people think founders are doing? (side effect: also good for employees!) It's silly because the option pool will be expanded as soon as it runs out through board consent post fundraising.
