Commerce is intrinsically a social activity and Social Commerce, by definition, is about buying online in an interactive, participatory manner. The plethora of options available a click away has increased the need to involve friends and family in the purchase...
Since the turn of the millennium, software product companies from India have threatened to become The Next Big Thing. After many false starts, the industry finally seems to have hit its stride. A combination of technology trends, talent availability and market...
Many entrepreneurs assume VC firms are monolithic entities with a uniform “firm view” on most topics. Nothing could be further from the truth. Our investment horizons are so long, and the markets we invest in so uncertain, that it is impossible for all of us to agree...
We’ve come a long way since the times of queuing up for tickets, scouting for the best travel arrangement or relying on travel-savvy friends and relatives for advice. Today, more and more users rely on the internet to plan their travel – big or small,...
As every parent knows, small children never fall ill during the day. When a child wakes up with a raging fever (or in a pool of vomit) at 2 am, the parent usually has one overriding concern: is it something serious that merits a visit to the ER? If only a doctor were...
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.
