What you need to know about warrants
FEBRUARY 24, 2016
I often get questions from CEOs about warrants, so I thought I would share a primer on them here. A warrant is basically like the options that you give to your employees. Warrants are typically given to investors as an incentive for investing. Example : A typical venture debt loan might have 10% warrant coverage. In this example, a $5M loan would require you to issue a warrant for $500K worth of shares in your company.