India spends close to USD 120 bn on healthcare each year, of which 80% spend happens on hospitalizations. More than 90% of this spend comes out of pocket. This has left a vast majority of the Indian population with healthcare bills disproportionate to their incomes....
I lived through two major downturns. The first one led to personal bankruptcy, and I narrowly survived the second one. In 2001, I worked for a boutique strategy firm in the Bay Area focused on growth strategies for hi-tech companies. Despite being one of the best...
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 nature of enterprise software has changed rapidly – significantly higher design/ usability expectations, cloud or hybrid cloud deployments, pay as you go pricing (sometimes usage based) and increased security & privacy concerns. As a result, one can argue that...
You did all the hard work in building your founding team, ideating to a problem to be solved, creating the minimum viable product (MVP), finding product market fit, and creating some version of a go-to-market recipe that can be scaled. All you now need is fuel to be...
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.
