Demand for software is growing twice as fast as the supply of software developers. As every business strives to become a software business, the demand will grow even more rapidly. However, there are only so many developers that the world can produce every year,...
Contrary to popular narratives that software is not impacted during downcycles, it does. To a large extent, it already has. Sales cycles have lengthened by 20-25% and public cloud vendors have seen their growth reduce. Over the last 5 quarters, YoY growth for US...
B2B buying is moving online, particularly so since the pandemic. Thanks to the wealth of information available online, buyers today prefer to do their own research independently instead of relying on sellers to educate them – estimates suggest a third of all B2B...
Over the last three years, the number of parameters in AI models have gone up 16,500x and computing power used to train these foundational models has gone up by a trillion times since 2017. Machines have surpassed an average human in most cognitive tasks be it...
Over the past few months, we’ve seen a plethora of Generative AI applications emerge across various fields; predominantly focusing on business use cases such as sales & marketing, coding, etc., or for infotainment through art, comic generation, and more. ...
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.