Warrant
A right to buy shares at a set price within a defined period, often attached to investments or debt.
Warrants give the holder an option to purchase shares later at a fixed price. They are common sweeteners on venture debt or bridge financing, compensating lenders for risk. When exercised, they dilute existing shareholders.
Examples
A venture debt lender receives warrants for 1% of the company. — An investor gets warrants as part of a bridge deal.
How it relates to The Startup Foundry
Understanding instruments like warrants is part of investment readiness covered in the Foundry’s resources.