Ever wondered why all mosquito repellent TV commercials have kids? Children are believed to develop an immediate emotional rapport with the audience because as parents we are conscious of our kids’ safety more than our own. While making purchases for them, we try to...
A version of this article was published in Mint on September 3, 2018 Through the tumult of the past few decades, one fixture has remained constant on Indian roads – the humble motor scooter. From the elegant Lambrettas of the 1960s our grandfathers rode, to the...
Founded in 2008, Capillary Technologies has since then seen numerous ups and downs to become one of India’s largest cloud-based platform for providers of omni-channel customer engagement solutions to retailers and brands. The growth trajectory of this...
There are multiple techniques to conduct interviews. Before I go into anything specific, do you have any thoughts on what have you seen work and what didn’t? While interviewing a candidate, the objective is to figure out if he/she can add value to your company....
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.
