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Venture Deals

Redeemable preferred warrants

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Jul 20, 2023
What are best use cases for redeemable preferred warrants? I have heard they are most useful for seed rounds if founders want to maintain equity (by redeeming it) prior to a Series A, and I have also that they can be very expensive money. When does it make the most sense for an investor to issue them?
warrants redeemable preferred warrants
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Mike Suprovici
Accepted Answer
Jul 21, 2023
Sometimes, startups issue warrant coverage to sweeten the deal by providing investors with the opportunity to gain additional shares in the future at a lower price.

Please note that most of the things you will 'hear' in the world of venture capital outside of Decile Base are wrong because there is little transparency in the industry.
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