Month: July 2021

Initial discussions between founders and VC funds are usually centred around the business and valuations. When commercial discussions materialise, the first step towards the investment is execution of a term sheet. But when the VC fund offers a term sheet to the founders, it comes with certain legal terms and conditions – what are those terms and conditions? In Part II of the VC Series we discuss the approach to negotiate a term sheet – the need to understand the implications of the legal terms used in the term sheet and the market standards in India

Over the last few decades while India went through radical changes, so did the world of venture capital (VC) financing for start-ups. While seasoned institutional investors are well versed with the legalities of VC financing, first-time founders are often struggling to find their feet in the journey. Likewise, first-time investors in India also grapple at times with adopting some of the market standards that have been established in the Indian market. This series is an endeavor to offer guidance to first-time founders and investors in India. What should they do? How should they do it? What are the accepted VC practices in India? We have tried to answer these and other questions.