Fundraising & Equity
Warrants Explained
Collated by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
What a Warrant Actually Is
- A warrant is a contract giving the holder the right to buy company shares at a fixed price for a set number of years.
- It resembles a stock option but is usually issued to lenders, partners, or investors rather than to employees.
- The holder is not a shareholder until the warrant is exercised and the purchase price is paid to the company.
- Warrants commonly run for 7-10 years, which lets the holder wait for a liquidity event before deciding to exercise.
Related Resources
Fundraising & Equity
IPO and Going-Public Readiness
A founder-focused walkthrough of IPO readiness, the S-1, direct listings versus traditional IPOs, and what changes once you are public.
Fundraising & EquityReal Urgency vs Manufactured FOMO in Fundraising
Why fake urgency destroys trust with investors and how to create real momentum that drives competitive fundraising processes.
Fundraising & EquityHow Much Should I Raise?
How to determine the right amount to raise based on your milestones, burn rate, and the metrics needed to unlock your next round.
About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
More articles by Harry →