India trades around $300 billion of retail products every year. While people talk about companies owning distribution chains, more than 70-80% of retail goes via the wholesale route. In addition, we are home to more than 12 million retailers and 1 million sellers. Due...
Over the past 24 months I have been asked this question many times – will India ever create large tech companies? And considering we went through a strong run-up in valuations, followed immediately by a hard fundraising environment, it’s a fair question to ask. ...
The “golden decade” of Indian technology is upon us India is in the middle of a perfect storm of opportunity. We have a $2 Trillion economy, a young population with smartphones in hand, a vibrant entrepreneurial culture, and an enabling regulatory environment. These...
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.
