Warrants
Best practices on working with warrants
Last updated
Best practices on working with warrants
Last updated
Add an New Round to account for the warrants.
Security Type: Other
Investment Amount: Price paid for warrants
Round Size: Same as investment amount
Valuation: The implied valuation of the company at the exercise price
You may also choose to enter data in the Share Mode where you can specify
Share Price: Exercise Price
Shares Purchased: Shares purchased via warrants
Total Shares Owned: Total shares owned post-warrants exercise
Total Shares Issue: Shares purchased via warrants
Fully Diluted Shares Outstanding: Shares outstanding at the company after warrant exercise
The aggregate valuation of the company will reset to the exercise price, so the next step is to add a Valuation Update event to recalibrate the aggregate valuation to the current aggregate valuation.
Alternatively, you can also simply add an Ownership Update event to reflect the new ownership in the company post-warrants. In this approach the price paid for the warrants is not captured in the invested amount into the company.
