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...
Building a global enterprise GTM strategy is complex, especially if you’re an early-stage founder. Unlike SMB strategies that can often be managed remotely, enterprise GTM requires physical presence in multiple countries. This involves handling large deal sizes,...
Erica is an account executive at a large IT services company, say ABC. Her job involves selling bespoke solutions for critical business problems to truly large enterprises. She recently won a contract to help XYZ, a large European retailer, reconfigure their loyalty...
If you’re an early-stage SaaS company focused on SMBs, how do you start your GTM engine? Early experiments in GTM are intertwined with achieving PMF, and also define the velocity, cost and scalability of the eventual GTM motion. We, at Stellaris, strongly believe that...
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 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.
