Register for our future SaaS Talks: https://rebrand.ly/SaaSTalks Where to domicile your company is an important question when starting your SaaS journey, with downstream implications on topics such as taxation, contracting with customers, financing, and exits....
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...
LLMs are all the rage these days, and for good reason – they have the potential to significantly improve existing software, while also helping re-imaging enterprise workflows. However, using LLMs to deliver robust performance that your customers expect is no...
Imagine you are responsible for demand generation for a company selling payroll software to mid-market enterprises. Much of your funnel is now generated digitally, as that is where buyers spend most of their time. You have spent a lot of effort in creating the best...
AI adds bite to your offering, but that can come at the cost of increased friction in adoption. Customers are often sceptical because of the uncertainty in output, and wary because you integrate deeply with their data. That can slow down GTM considerably. In this...
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.
