Startup Warrants Explained: Key Terms, Dilution and How Warrants Work in Startup Financing
In startup and venture financing, a startup warrant is a right, but not an obligation, to purchase shares in a company at a predetermined price (known as the strike price) within a specified period. Warrants are often issued alongside other investment instruments to provide additional upside to investors or strategic partners. They are commonly used in venture debt arrangements, strategic investment transactions and advisory agreements to help align incentives between investors and the company. Warrants are a familiar feature of startup and scaleup financing, but they are often less well […]
Startup Financing Explained: Convertible Notes, SAFEs and Warrants: Your Essential Guide
Capital raising can feel complex, especially when investors start talking about convertible notes, Simple Agreements for Future Equity (SAFE) and warrants. These instruments have become standard across Australian startup and growth financing, offering businesses flexible ways to raise capital without immediately committing to a priced equity round. As these tools become more common, understanding how they operate and when to use them is increasingly important. Our capital raising lawyers see these instruments regularly in practice, so we’ve drawn on those insights to help founders and growing businesses navigate them with […]