A warrant is a document that gives ICA the right to buy equity in your company at an agreed upon price over a specified period of time. More specifically, ICA will have the option to purchase a 1% equity stake in your business. This option to purchase equity is arranged in the form of a 10-year assignable warrant, and will be exercised only when there is a significant event and in accordance of the terms of the warrant document that ICA will provide each participating company. In the event an exercisable event takes place after 10 years and 1 day, ICA no longer has the ability to exercise the warrant.
In general terms, the warrant is a reflection of our commitment and belief that each entrepreneur we work with will grow their company to their ultimate vision and win big! If our Accelerator portfolio companies win big and share some of the win with us, it allows us to use those proceeds to support even more early stage companies through our services.