"In most cases, we’ll agree on a long-term residual stake for Earnest if you ever sell the company or raise more financing. We want to be on your team for the long-term, but don’t want to provide any pressure to “exit.”"
This seems to imply that they get a % of an exit or future financing even once the cap has been reached. That is functionally warrants right?
This seems to imply that they get a % of an exit or future financing even once the cap has been reached. That is functionally warrants right?