Valuation often forms the centrepiece of any startup fundraising discussion. For founders, it reflects the prospect of their vision; for investors, it signifies the price of future potential. Yet, in the early stages of a company’s life cycle, valuation is seldom a precise science. It sits at the intersection of commercial optimism, market sentiment, and […]
A term sheet marks the formal beginning of a fundraising transaction. It is a pre-contractual document that outlines the key commercial and legal contours of a proposed investment. While it is not a binding agreement in itself, it serves as a structured summary of the parties’ understanding and intent, setting the stage for the detailed
A capitalization table, commonly referred to as a cap table, is a structured record of a company’s ownership detailing the securities issued, the percentage of holdings, and the rights attached to each class of shares or instruments. It is, in essence, the company’s equity map. Beyond being a numerical summary, a cap table reflects the
Raising capital is one of the most defining milestones for any startup. As founders navigate their early growth journey, the choice of corporate finance instruments becomes more than a matter of convenience, it determines ownership structure, compliance obligations, and long-term investor relationships. In simple terms, these instruments represent the legal form through which investors bring
India’s startup ecosystem is burgeoning. As of December 2024, over 1.57 lakh startups have obtained DPIIT recognition, and they have generated more than 17.28 lakh direct jobs.[1] These numbers reflect the confidence in India’s innovation potential and the scale of enterprise being built nationwide. Yet, statistics also tell a harsher story: according to a study
Introduction Start-ups aim to bridge market gaps with innovative products and services, and the availability of capital is crucial for their growth. Given their limited revenue and high failure risk, start-ups often face challenges raising funds. To overcome these, many opt for a hybrid investment tool known as convertible debt or convertible note. This
Convertible Notes: A stimulating tool for Indian start-ups in the financial marathon Read More »
Ever felt an urgency to purchase your desired product online just because the concerned e-commerce platform notified that ‘only 2 pieces of the product stock left’? If yes, well, you might just have been a victim of a dark pattern. “Dark Patterns” is an abstract term referring to an array of deceptive practices that are
Unraveling Dark Patterns: Navigating the Regulatory Framework in India Read More »
What are Stock Appreciation Rights? Stock appreciation rights (“SARs”) are a form of incentive or deferred compensation tied to the employing company’s stock performance.[1]According to the glossary aggregated by Nasdaq,[2] under a SAR, the employee gets the increase in the stock price from the date of the grant to the date of exercise. However, a
Stock Appreciation Rights Under The Indian Framework Read More »
The Central Government, in September, 2021, had approved a production linked incentive scheme (“PLI Scheme”) to catalyse the drones and drone components manufacturing industry in India.[1] The PLI Scheme claimed that the drone component manufacturing industry may witness an investment of over INR 5,000 Crore over a period of three years from 2021. The PLI
A Primer on the Drone Rules of 2021 Read More »
India has witnessed multiple folds of growth in the digital economy space in the last decade. The growing ecosystem backed by the reformative policies is expected to boost the country’s digital economy to USD 1 trillion by 2025 [1]. The growth in the digital economy, as a consequence, has propelled the surge in the digital
Digital Lending in India: RBI’s Guidelines Read More »
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