Imagine you are responsible for demand generation for a company selling payroll software to mid-market enterprises. Much of your funnel is now generated digitally, as that is where buyers spend most of their time. You have spent a lot of effort in creating the best...
A lot has changed since we started mapping India’s Dev/ Infra startup landscape last year. We’ve seen economic stagnation in some of the largest software markets, a significant upheaval in tech hiring, and a major shift in tech expenditure. Even in these...
Agriculture is the backbone of India’s economy, providing livelihoods to more than half of the country’s population. The sector contributes to about 17% of India’s GDP and is the primary source of food for the country’s growing population....
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,...
The last place to go looking for startup opportunities is probably the periodic table, yet there might be gold between the hydrogen and helium pieces if you look closely enough. The 6th largest chemical producing country globally, India is home to a $200B+ chemicals...
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.
