Anant, one of my uncles, went through a varicose-veins surgery recently. While the surgery was successful, our overall experience was horrendous. Our first challenge was to find the right hospital. Since none of the larger hospital brands cared for small cheque...
Ever wondered why all mosquito repellent TV commercials have kids? Children are believed to develop an immediate emotional rapport with the audience because as parents we are conscious of our kids’ safety more than our own. While making purchases for them, we try to...
A revolution was ushered by Reliance Jio in the Indian telecom space that made the staunchest critics of its market strategy bow down. Not only did the market entrant push up internet penetration exponentially, it did so by giving its users daily gigs of data –...
Commerce is intrinsically a social activity and Social Commerce, by definition, is about buying online in an interactive, participatory manner. The plethora of options available a click away has increased the need to involve friends and family in the purchase...
The quote describes it the best – we work hard to earn money but do not put it to the best use. Most people just put money in their savings account (or probably FDs at best) but hey, how many millionaires do you know who became wealthy by investing in a savings...
The Company and the Founders shall complete an initial public offering or a ‘strategic sale’ within 5 years from the Closing Date (“Exit Date”) on terms that are acceptable to the Investor. The failure of Company and Founders to provide an exit by the Exit Date shall not relieve the Company / Founders of their obligations to provide an exit to the Investor, which shall continue until the Investor ceases to hold any shares. In case of failure to provide exit, the Investor shall inter-alia have a drag along right on all other shareholders of the Company.
Liquidation Preference
Higher of 1x or pro rata entitlement on an as-if converted basis in any liquidity event. Liquidity event shall be defined in the definitive documents and will inter alia include change in control or sale of substantially all of the assets of the Company.
Pre-Emptive Rights
The Investor shall, in any subsequent offering of securities by the Company, have a right to maintain their shareholding in the Company. [Note to Draft: Any super pro rata rights will be over and above this and should be included here]
Valuation
The valuation section concerns what an investor believes the company is worth. valuation issues addressed in the term sheet will include: pre-money valuation, post-money valuation, capitalization table and price per share.
