A version of this article was published in Mint on September 3, 2018 Through the tumult of the past few decades, one fixture has remained constant on Indian roads – the humble motor scooter. From the elegant Lambrettas of the 1960s our grandfathers rode, to the...
I hail from a town called Kota which is now famous for being the education capital of India. Back when I was young, it was a sleepy town with a population of 5 lakh. In our colony, I remember, there used to be these entrepreneurial women who would use their sourcing,...
North-East, the land of seven sisters, with a population of more than 45 million, is connected by rail and road with the rest of India only through the 22 km-wide Siliguri Corridor. The lack of connectivity through Bangladesh has made accessibility between most parts...
As every parent knows, small children never fall ill during the day. When a child wakes up with a raging fever (or in a pool of vomit) at 2 am, the parent usually has one overriding concern: is it something serious that merits a visit to the ER? If only a doctor were...
If you look that the history of great B2B products, they all have an underlying theme – they have taken a business that was fundamentally (and inevitably) changing and built a product that would facilitate this transformation. In the hindsight, all those...
One of the holy grails of software is that it should be so easy to use that no one should require help to use it. The dream is fair, but a distant one. Design thinking, focus on UI and improvements in UI technologies have indeed made software more intuitive. That...
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.