Back in the summer of 2009, we had an energetic young guy from Wharton turn up for an internship. He was smart, ever smiling, and possessed strong entrepreneurial desire. Along with being involved with one of our portfolio companies, he was researching the idea of...
Freshworks founder Girish Mathrubootham recently announced that the company crossed $100M ARR – a defining moment for Indian SaaS companies. From its inception, Freshworks has believed in selling its products in global markets. Most SaaS investments by Indian VCs have...
Right from a startup’s very first day, building a strong tech team is a challenge for most founders. In a candid interview with Stellaris, Mekin Maheshwari – a Stellaris Founder Network member- talks about the key insights he gained while building one of 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,...
By Sanjay Anandaram The role of capital in capitalism and free markets has never been so emphatically underlined as in the current times. The ability of capital to create not just markets but entire ecosystems, industries, millions of jobs, stakeholder value,...
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.
