Glossary · Debt
Warrant
A contract that gives someone the right to buy shares later at a set price, often bundled with loans. Lenders use warrants for extra upside if the company does well.
Related: Venture debt · Mezzanine financing · Cap table
A bit more nuance▾
- Common alongside venture debt and some mezzanine structures.
- Warrants dilute when exercised — model them like hidden options.
Go deeper▾
Discussion questions▾
- What share of the company might warrants represent at success?
- Would you trade cheaper debt for more warrants?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.