2min chapter

This Week in Startups cover image

Taking the leap on valuation, strategic retreats (VC School), + more | E1510

This Week in Startups

CHAPTER

What Are Warrants?

A warrant is a right to buy a share. Sometimes people will give it to a consultant, hey, we'll give you a thousand, u ten thousand dollars in warrants. And then when the sale does happen, those people execute their warrants and al asend n say, wait a second. I thought i was going to make five million dollars on this. Itslike note, you're only making four point five because executed their warrants and they own ten % more of the company. So if your a sophisticated founder, should do sort of establish a little baby pool of them,. It's not like an employ stock option pool. We re not o gal for thel, but like a mental

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