Contrary to popular narratives that software is not impacted during downcycles, it does. To a large extent, it already has. Sales cycles have lengthened by 20-25% and public cloud vendors have seen their growth reduce. Over the last 5 quarters, YoY growth for US...
As an investor in early stage SaaS companies, I often find founders to be confused on what metrics they should track. Challenge is not a lack of metrics, but too many metrics, with most of them stage irrelevant for the company. For example for a pre-PMF SaaS company,...
Why Existing Customers Matter I sold enterprise software for 10 years at SAP and Siebel during the license era. If you look at the core economics of that business, the upfront license revenue from a customer is offset by the cost to acquire. Implementation services...
Banks know that technology is the foundation for future growth. And accelerating the adoption of tech is one of their biggest priorities. It’s impossible to think of banking without technology. Most financial institutions offer digital services that are quick, safe,...
In the last few years, many B2B marketplaces have emerged globally across various verticals. Two types of marketplace models have become most prominent – (1) Open marketplace models: where buyers can choose which supplier to work with based on the availability...
Our portfolio company Slintel recently closed its Series A round; the round was led by GGV Ventures, with participation from existing investors (us, Accel and Sequoia). We partnered with Slintel about 2 years ago, in the middle of 2019, and our excitement levels about...
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.