Hello and welcome back to Equity, Tech Crunch's flagship podcast about the business of

startups.

I'm Marianne Asavato and as you may have noticed we're shaking things up here on

equity and today is no different. Instead of our usual

interview show today I'm joined by Tech Crunch senior reporter Christine Hall

and my new Equity co-host Haya Camps. Christine Hay Haya, hello, so happy to have you here.

Hello.

It's so good to be here.

I'm so happy to sit here in this very luxurious co-host chair.

Well, it suits you well. So Christine, we are talking about a story today that you and I worked on together for months. It was about an accelerator that is now defunct called New Chip was based here in Austin, Texas where I'm located and wow

To say there was a lot going on here is an understatement.

Yes.

This accelerator went bankrupt or filed for bankruptcy last year and you know the drama didn't end

there.

All sorts of things have gone down since then. So we're here to kind of dissect and discuss today.

It's been such an interesting thing to follow you guys covering this story.

So it seems like a big part of the problem with this bankruptcy is related to

warrants and you know I'm guessing we don't mean police warrants here what are

warrants and why does this matter in the context of an accelerator?

Yeah so to describe warrants I'll try to simplify this as much as possible. So when they signed up for this accelerator program,

startups granted New Chip the right to buy $250,000 worth of shares in their company at a later date, but at their

current valuation.

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