Are warrants in venture debt opportunistic?

[Niyi]

Warrants with regards to venture debts is an arrangement where a lender gets a part of the ownership of a business if it succeeds.

It doesn't want the ownership if the business fails. Is this arrangement taking advantage of the entrepreneur's lack of funds?

 

[Iboro]

This kind of arrangement is very opportunistic. In the other way round, it coukd spur them to help make your business succeed.