> For the complete documentation index, see [llms.txt](https://docs.tactyc.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tactyc.io/portfolio-management/managing-rounds/warrants.md). # Warrants Best practices on working with warrants ## **Method 1: Adding a new round for Warrants** 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.

## Method 2: Ownership Update Alternatively, you can also simply add [an Ownership Update event](/portfolio-management/managing-rounds/updating-ownerships.md) 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.tactyc.io/portfolio-management/managing-rounds/warrants.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.