In 2015, I was running my first startup. It was a laundry services business. We were the new age Dhobis – as my parents would call it – where customers could book the service on an app, choose their preferred pickup & delivery time-slots, and pay...
Building a large, sustainable company is hard, and the odds are always against the entrepreneur. Often we believe that if we find a meaningful problem to be solved within a large market (hopefully with some tailwinds), achieve product market fit (PMF) and go-to-market...
A Li-ion battery needs to be charged regularly and can go through 1500-2000 charging-discharging cycles in its lifetime. The business to supply energy to batteries is an interesting opportunity in itself. Two potential models are emerging, both of which have been...
For an EV, battery is the most differentiating component. It accounts for 40-50% of the total vehicle cost and plays the most important role in a vehicle’s performance. It can draw the line between success and failure of an electric vehicle. Note: This is the...
In late 2018 / early 2019, we spoke to 50+ participants within the Indian EV ecosystem and published our views on its evolution in two articles – Part1 and Part 2. Since then, a lot has changed. Most initial experiments have failed. Numerous start-ups (and some...
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.
