Is an issue of share options a good way of raising capital to grow my new buisiness before it proves itself?

With the inception of a share options grant, no capital is raised and no accounting entries are created. If and when they are exercised, the share option reserve is reduced and your share capital is increased. However, the primary motive of share options is not to raise capital, especially for new businesses.

You can use share options to attract and retain employees, especially for new businesses. You don't have to incur high operating costs for your staff and yet reward them with the growth of ur company and if it does get listed, they can definitely cash in!

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