Historically, software and services have operated in separate worlds, a line that is becoming blurry today. Global software spending has surged to nearly $900 billion. Software companies have high upfront investment and strong gross margins. In contrast, services...
At Stellaris, we have historically carried a level of scepticism on the sector, i.e. companies selling SaaS to banks, wealth management firms, and insurance companies in India. This is primarily on two counts – firstly, lack of conviction in the appetite of...
Punch is a mobile-first stock broking app which is focused on enabling options trading for retail traders, especially part-timers with day jobs. They’ve pioneered a single-screen trading experience to trade from mobile. Our investment thesis in Punch hinges on three...
If today, a Small and Medium Business (SMB) owner in India were to approach a bank for credit, they would invariably encounter the customary setbacks for loan approval: lack of credit history, unavailability of collateral, and insufficient documentation, to name a...
The last decade has seen rapid changes in software development – agile development, APIs, microservices, OSS and the growth of AI-first and data companies. All of these have led to the creation of a large number of developer tool companies. Over the past few...
The emergence of Credit Line on UPI represents a significant leap forward in the financial landscape. This pioneering financial offering promises to reshape the lending landscape, providing individuals and businesses with seamless access to pre-sanctioned credit lines...
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.