A lot has been written about the surge in funding in Indian ed-tech – the sector received more than USD 2B in funding in 2020, compared to USD 550M in 2019. However, Byju’s acquisition of Akash finally felt like a watershed moment in Indian ed-tech (irrespective...
I made an excited jump into early stage investing on Friday the 13th last December. The 22 year old me devising randomized algorithms in Bharti Building’s labs at IIT Delhi had no idea that his 25 year old version would be sitting in startup pitches 5 days a...
Historically, It has been hard to disrupt a consumer brand. Many of the leading consumer brands (either individual or a group) – Coca Cola, L’Oreal, Unilever, P&G, Colgate, Gucci, Nestle, etc – have been around for about a century. Over the last...
Sometime in 2017, we had the opportunity to speak with Deepak Anchala, co-founder and CEO of Slintel. Deepak was building a SaaS company in the sales intelligence space. It was early days for him. We shot some breeze and exchanged ideas on where within the sales...
Founders of a well run startup invariably have multiple balls up in the air. One of the key aspects founders need to deal with is their Board. For some founders, Board members add little value and for some, they can be extremely useful. This blog is an attempt to...
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.