As a consumer, I (Arpit) have had several shopping experiences I remember fondly – our local grocer reminding me of adding something to my list by virtue of knowing my family and our preferences, a retail associate helping find the right skin product for my...
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...
In the last few years, many B2B marketplaces have emerged globally across various verticals. Two types of marketplace models have become most prominent – (1) Open marketplace models: where buyers can choose which supplier to work with based on the availability...
The migration of enterprise software from an on-premise model to one hosted on a central cloud — a trend that started ~20 years ago with Salesforce as a torchbearer — has continued unabated, with much headroom left still. Consequently, SaaS has been on a roll in...
In May 2019, we partnered with Slintel – a company we had known for 2 years prior – by leading their seed round. They have grown from strength to strength since then – ARR up >30X, ACVs up >2X – and recently announced their acquisition by...
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.
