Enough has been written about the need for more consumer brands in almost all spheres of our lives. Given that we are all consumers first, it is apparent that with increasing individualism, rising incomes, and scarcity of time at hand, a new set of brands will get...
If you have raised venture capital in India in the past few years, you have surely asked yourself the question, “Should I be raising venture debt as well?”. Venture debt, as the term suggests, is a form of risk financing through debt rather than equity. In India, it...
Have you heard the cobra story? The story goes like this – there were a lot of cobras in Delhi and to kill them, the British rulers announced an incentive per killed cobra. Did it have an effect? Absolutely! Many cobras were killed and a lot of money was paid out. But...
Founded in 2008, Capillary Technologies has since then seen numerous ups and downs to become one of India’s largest cloud-based platform for providers of omni-channel customer engagement solutions to retailers and brands. The growth trajectory of this...
Every sector has a few large marketplaces, where brands compete with each other to get the maximum share of the customers’ wallet. For instance, Flipkart/Amazon for e-commerce and Makemytrip/Booking.com for travel. However, in a competitive and cluttered marketplace,...
No single phrase has ever done as much damage to the profession of sales as ‘selling ice to an Eskimo’ has. How many times have we heard someone describe a great salesperson, and add this phrase to highlight his/her sales prowess? In reality, succeeding in sales is a...
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.