A Warrant is a security that gives the holder the right to purchase a specified number of shares at a set price (exercise price) before an expiration date (or sometimes perpetually), similar to an option but typically issued to investors or lenders. In venture debt and structured financings, a Warrant provides equity upside to the lender, and Warrant coverage (percentage of the loan) and terms can materially affect dilution.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
