2 ms·
Read your comment and parent. The quote from the article doesn't explain why the warrant owner matters, and you suggest the cap table structure does, which mak
by b112 3y ago
Read your comment and parent. The quote from the article doesn't explain why the warrant owner matters, and you suggest the cap table structure does, which makes sense.
However, the structure has nothing to do with ownership of parts of that structure. Why would warrant ownership matter?
- llamaimperative 3y agoBecause as an investor in a company, you don’t want that company’s founders constantly distracted by a piece of shit investor who has a massive stake in their company. Pretty straightforward. Investors can create tons of havoc, and “bought equity from a bargain bin outside of a bonfire” is probably as good a warning sign as any.
- b112 3y agoThe size of the warrant is still the structure. In terms of investment, as the warrant is demonstratedly transferable, the investor ownership is always an unknown. This still sounds like structure(size and control of a single warrant) rather than who. The real issue seems to be any large warrant, that is, the uncertainty in the structure.