The Warrant grants the Founder Institute 2.5% at the time of the first Qualified Equity Financing.
There are two types of investments done by founders, either a convertible investment or an equity investment. The Warrant only matters with respect to a Qualified Equity Financing, which is defined as any equity investment for $100,000 USD or more completed by external investors - people other than the founder or founders themselves. If you join a qualifying startup program, such as YCombinator, after graduation from the Founder Institute program, a Qualified Equity Financing is defined as any equity investment for $25,000 USD or more. The Founder Institute maintains a list of qualifying startup programs.
The Founder Institute does not intend to purchase the Warrant until a liquidity event occurs with a greater value than the strike price, at which point FI will purchase the Warrant to return value to the Equity Collective.