We’re thrilled to announce the close of our third fund of $300 million to back early-stage founders in India building for Indian and global markets. Our strategy with the new fund remains consistent with our first two funds. We will continue to back companies in...
Historically, software and services have operated in separate worlds, a line that is becoming blurry today. Global software spending has surged to nearly $900 billion. Software companies have high upfront investment and strong gross margins. In contrast, services...
November 2020. The covid pandemic is raging around the world. In India, where we are confined to our homes in a complete lockdown, two teenagers ask a simple question: Why does it take a full 24 hours to get groceries delivered at home? Can we combine the service...
At Stellaris, we have historically carried a level of scepticism on the sector, i.e. companies selling SaaS to banks, wealth management firms, and insurance companies in India. This is primarily on two counts – firstly, lack of conviction in the appetite of...
Five years back, Whatfix raised its Series B when Eightroads, f-Prime Capital and Cisco joined the captable, and I wrote an article on lessons learnt in going from Series A to B. A lot has changed since then for Whatfix – they have grown 25x in their ARR since...
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.
