Like many people in business, I learned negotiation during my MBA. I took a very popular and highly enjoyable class on the topic and learned a variety of concepts and techniques for successful negotiation. Soon I was estimating the “BATNA” (best...
Getting media attention can be difficult for early-stage entrepreneurs, so it is important to make the most of whatever opportunities you get. Over the past five years, I have interviewed over a thousand entrepreneurs across all startup stages. Below are my learnings...
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.
