🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

News

Messages

Try our Valuation Calculator →

Back

Vishu Bheda
•

Medial • 7m

Flipkart sold for $16 billion, but the founders got almost nothing. After looking at 100+ startup deals, I found some toxic terms that hurt founders: 1. Liquidation Preferences: Investors get their money back first. If the sale price is low, founders might get nothing. 2. Anti-Dilution Clauses: Protect investors in future funding rounds but can shrink the founders' ownership. 3. Drag-Along Rights: Investors can force founders to sell the company, often in a way that benefits investors, not founders. 4. Vesting Schedules: Founders might lose their shares if they leave the company early, even if they built it. 5. Control Rights: Investors often want control over company decisions, limiting the founders' power. 6. High-Interest Convertible Notes: These loans can turn into shares at a bad rate for founders, reducing their ownership. Indian founders need to understand these terms and ensure fair returns from their startup’s success. Follow me Mr Z for more valuable content!

10 Replies

Replies (10)

Jagan raj

Founder & CEO of Tec... • 7m

this is great 👍 but you forget 2X liquidation term

Anonymous 7

Hey I am on Medial • 7m

Honestly, Indian founders need to treat term sheets like battle plans. If you’re building the castle, why let someone else control the bridge?

Rohan A

On My Way • 7m

Problem beta did, what's the solution?

Anonymous 6

Hey I am on Medial • 7m

Liquidation preferences and anti-dilution sound harmless until you’re left holding scraps of what you built. Investors play chess and founders often don’t realise they’re the pawns but what does take to command control in negotiations and how to avoid this?

Anonymous 5

Hey I am on Medial • 7m

Founders got almost nothing? DIdn't they become like billionaires from the sale?

Sairaj Kadam

Entrepreneur • 7m

This is indeed a disappointing reality. However, your statement is accurate; Indian founders need to comprehend these terms.

Anonymous 4

Hey I am on Medial • 7m

The sale may be for billions, but the founders' slice is often much smaller.

Anonymous 3

Hey I am on Medial • 7m

Sadly Founders put in the work, but investors often take the biggest share.

Anonymous 2

Hey I am on Medial • 7m

Agree Liquidation preferences can leave founders with little to nothing after a big sale! 😭

Anonymous 1

Hey I am on Medial • 7m

Startups are a dream for founders, but harsh terms can turn it into a nightmare.

Recommendations from Medial

Saksham
•

Bebyond • 10m

Tag Along v/s Drag Along Rights When drafting agreements, Tag Along and Drag Along Rights are essential clauses that shape how investors and founders navigate ownership changes. Let's break down the impact from both perspectives: For Investors: 1.

6 Replies

Saksham
•

Bebyond • 9m

Transfer Rights Clauses in SHAs from an Investor’s Perspective!! When investing in startups, a well-drafted Shareholders Agreement (SHA) isn’t just a formality, it’s the foundation that protects their financial interests and ensures strategic contro

Ashish Singh

Finding my self 😶‍�... • 6m

🤷who owns zepto? -- Zepto's founders, Aadit Palicha and Kaivalya Vohra, collectively own approximately 18% of the company. Additionally, they have been granted an extra 1% stock for meeting performance goals, bringing their total ownership to arou

5 Replies

SamCtrlPlusAltMan
•

OpenAI • 8m

Here is a list of notable tech founders, their ownership stakes in their respective companies, and the current estimated worth of those companies: Notable Founders and Their Company Valuations Elon Musk - Ownership: 42% of SpaceX - Company Valu

7 Replies

SHIV DIXIT

CHAIRMAN - BITEX IND... • 8m

📖 DAILY BOOK SUMMARIES 📖 🔗 DIRECT FREE E-BOOK DOWNLOAD LINK AVAILABLE — https://drive.google.com/file/d/1--aB_ZVfiPNVRpBBpZeLnEnE28Wp4dLP/view?usp=drivesdk 🔥 The Founder's Dilemmas: How fail 🔥 🚀 20 Lessons From 👉 ✨ Noam Wasserman ✨ 1. C

Saksham
•

Bebyond • 11m

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

CA Yugesh

Chartered Accountant... • 7m

🌟 The VIP Pass of the Investment World: Unraveling PREFERENCE SHARES In the bustling world of investments, these shares are like the golden tickets that come with some extraordinary perks. In simple words, Companies need investments but may not wa

Saksham

Legal Advisor! • 1y

Understanding Shareholder Agreements (SHAs) in M&A Did you know that the terms of your Shareholder Agreement (SHA) depend on the level of your stake acquisition in a company (SPA)? Here's a general overview of how SHAs differ based on acquisition ty

Rajan Paswan

Honorary Mentions - ... • 1y

As a founder, your startup is your baby. But what about when that Golden Exit opportunity appears? Drag-Along Rights in your Shareholder Agreement(SHA) are crucial for ensuring a smooth acquisition process. What are Drag-Along Rights? They empower

2 Replies