Perpetual Warrant

A Perpetual Warrant is a warrant that does not have a stated expiration date (or has an extremely long-dated term), allowing the holder to exercise into equity indefinitely, subject to the warrant’s conditions. In venture debt and structured financings, a Perpetual Warrant can be highly dilutive over time, and Perpetual Warrant terms are often negotiated to include call rights, cashless exercise mechanics, or other limits.

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Ryan Roberts Startup 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.