As software ate the world over the last decade, dev companies (ie, businesses with developers as the primary users) ended up building a massive market- $55B+ in annual revenues, still growing fast at 20%+ YoY. Since every 4th developer on the planet lives in...
Era Jain & Anagh Prasad, July’21 Dev-software, i.e. products that are sold to, purchased or influenced by, and consumed by software developers, is a $40B+ market today, accounts for 7% of the global software spend and is growing at 19% CAGR. As every company...
Technologists and tech investors are fond of saying “data is the new oil”. Often, they mean that data is the fuel that powers the new economy. But data and technology are also the new oil in another sense – they are the most strategic national assets of the 21st...
The need to focus on data is real today considering the amount of data that startups are collecting has grown exponentially over the past few years. However, the big question that plagues many of the founders’ include- at what stage of the journey should they start...
The next wave of 300 mn vernacular Indian users coming online has been the talk of the town for a while now, and rightly so, given the massive implications it has on multiple industries such as content, commerce platforms or brands. We have seen many startups emerge...
Back in the summer of 2009, we had an energetic young guy from Wharton turn up for an internship. He was smart, ever smiling, and possessed strong entrepreneurial desire. Along with being involved with one of our portfolio companies, he was researching the idea of...
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.