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Why Every Startup Needs a Founder Vesting Clause When launching a startup, it's crucial to protect your team and the company’s future. One key safeguard? The Founder Vesting Clause in your Term Sheet. What is Founder Vesting? Founder vesting ensur

A Term Sheet for company Pre-Seed/Seed/A/B defines: 1) Company 2) Founders 3) Investors 4) Structure of financing 5) Liquidation preference 6) Anti-Dilution 7) Advisory board 8) Material Decisions 9) Pro-rata Right 10) Right to First Refusal 11) Dra

Last time we discussed dilution in SHAs. Today, we tackle the Board of Directors (BOD)! The BOD: This group oversees your startup's big picture strategy. The SHA defines how many board members there are and how they're chosen. Why it matters: Havin

How much board seat right should you give to an investor in exchange for funding? Yesterday, met an founder who is running a biz with ₹10 Cr rev During our discussion, the founder mentioned an investor who was interested but only on the condition o

How a Broken Cap Table Turns Founders Into Employees of Their Own Company? Founded in 2009, Quid raised over $108M in funding and reached a peak valuation of $300M+ by 2016. Yet when the company was acquired by Netbase in 2020, founder and CEO Bob G

Demystifying the Ownership Structure Clause in Shareholder Agreements (SHA)📍 The Ownership Structure clause in your SHA is crucial. Here's why: 1. Defines Equity Distribution: It outlines who owns what percentage of the company. This impacts deci

Startup Founders: Is Your Shareholder Agreement Protecting Your Vision? Let's talk about a critical component that often gets overlooked: the Voting Rights Clause. As a founder, you've poured your heart and soul into your startup. But have you con

📖 DAILY BOOK SUMMARIES 📖 🚀 20 Lessons From 👉 🔥 The Entrepreneurial Bible to VC 🔥 ✨ Andrew Romans ✨ 1. Understanding Venture Capital • Learn how VCs operate, their goals, and funding structures.l • Types of investors: angels, seed fund