Raising investment is an important milestone in a startup's journey. Depending on what stage you are the terms of investment varies and so does the nuances related to it. It becomes overwhelming for founders to decode various legal terminologies and clauses. In a bid to outperform and also to show that they care more for their client (investors), the term sheet and agreements contain a lot of craps which can be costly to the startups at a later date. This is getting more prevalent with a lot of new HNIs hitting the block from various walks of life.
Remember, there is nothing called a standard term in any agreement. A deal is a deal and everything can be up for a change. So whatever you hear in the name of "Standard term" alibi from another side, think before accepting the same.
We help you decode the term sheet in plain English. You get to know the impact of each item on founders, the startup and even investors and how it flares out in various scenarios depending on your stage and roadmap. Powered with a thorough understanding of the terms, you get to decide whats best for you and how to go ahead on the negotiations.
Any investor will run a complete due diligence on your startup, after the term sheet is signed and before they release the money. We can help you with supporting the due diligence exercise and also fix any noncompliance, so that entire exercise can be completed at a rapid pace.