Raise Funds

Agreements

There are various key legal agreements which need to be executed between the Entrepreneur (in his personal capacity), Investor and the Investee company – starting with Term Sheet and followed with agreements like Shareholders Agreement (SHA), Share Subscription Agreement (SSA), Share Purchase Agreement (SPA), etc. These legal agreements will be the final reference point for resolving all disputes which may arise in future between the parties. On execution, these Agreements supersede all earlier agreements like Term Sheet, etc.

Complete By* : 19 Aug, 2024

Pricing Summary

Traditional CA/CS Price : ₹ Diverse /-

Other Online Price : ₹ Not Available /-

Our Base Price : ₹Price on Request /-

Govt. fees & taxes : ₹As per govt rates /-

You Pay: Price on Request/- all inclusive

Government Fee included in above

You Save : ₹ /-

What do you get?

Review of Term Sheet

Explanation note on agreements

Review of Various agreements

Hand Holding for discussions

Advise on different terms and conditions

Full Edit of Term Sheet on Track Change Mode

Why Should You Choose SeedUp for

Drafting of agreements?

SAVINGS

in cost, most economical

FASTEST

completion of assignment

EXPERTISE

experts guide you to bring clarity in your ideas

RESPONSIBLE

Deep understanding of various legal agreements and advise accordingly

HASSLE FREE

Making the entire process hassle free and holding till the end

Agreements 

 

Our work shall start with Term Sheet and continue till signing of agreements, A Term Sheet (TS) is a non-binding agreement that outlines the basic terms and conditions of an investment (typically in bullet points). This is the first document signed by the prospective investor to show his willingness to invest in the company. It normally gives details about funding, rights & obligations of each party, corporate governance mechanism, exit strategy, etc. The TS acts as a guiding principle on the basis of which all the subsequent agreements (like Shareholders Agreement, Share Subscription Agreement, etc.) will be drafted and executed. Management should not sign any TS in a hurry – rather a well negotiated and understood TS goes a long way in protecting the interest of the entrepreneur. Post Terms Sheet, various agreements needs to be signed, if both the parties have agreed and things are moving ahead. There are various key legal agreements which need to be executed between the Entrepreneur (in his personal capacity), Investor and the Investee company – like Shareholders Agreement (SHA), Share Subscription Agreement (SSA), Share Purchase Agreement (SPA), etc. These legal agreements will be the final reference point for resolving all disputes which may arise in future between the parties. On execution, these Agreements supersede all earlier agreements like Term Sheet, etc. 

Documents Required

Company Incorporation Documents

PAN Details / GST Number details and other important registration documents

Details of Registered office and places of work

Capital Structure of the Company

Basic Details of the Directors / Partners / Founders and Promoters

* (All documents in Pdf scanned. Image file in jpeg format)

* (All documents to be Self Attested and signed on each page)

Raise Funds

Agreements

Raising Funds always leads to lots of agreements. These agreements are necessary for the Incoming Investors, as it gives them certain rights and privileges within the Entity. Similarly the Management of the Entity raising funds, also gets certain privileg

Video Call with Expert

Detailed introductory discussion with the entrepreneur about his/her business, the stage of his fund raising

Information Checklist to be sent to entrepreneur – requesting information / documents bearing impact on the Term Sheet Entrepreneur to arrange for the information / documents as per the Checklist

SeedUp team to review each clauses of the TS and other associated information / documents critically Few rounds of interaction with the entrepreneur & his team members Later on same process to be followed around different agreements

1st round of feedback shared with the entrepreneur for onward submission to the Investor Investor will renegotiate on some of the clauses again

2nd Round of discussions / evaluation to be done with the Entrepreneur and feedback shared with him / her. Final negotiation, finalisation & execution of Term Sheet with the Investor

Final negotiation, finalisation & execution of Term Sheet with the Investor

Entire exercise from Term Sheet to execution of agreements may take anywhere between 4 - 8 weeks, depending on timely completion of Due Diligence.

Important definitions

Agreements

Some Important definitions used in Accounting Entries are:

Term Sheet

A term sheet is a non-binding document that outlines the main terms and conditions of a proposed business agreement between two parties. It serves as a roadmap for negotiations and helps both parties to understand the key points of the proposed agreement before drafting a more detailed and formal contract.

Due Diligence

Due diligence is a comprehensive and systematic review and investigation of a person, organization, or business before entering into a transaction, investment, or partnership. The purpose of due diligence is to verify the accuracy of the information provided by the other party and to ensure that the risks and benefits of the proposed transaction are fully understood.

Shareholders' Agreement

A shareholders' agreement is a legal contract between the shareholders of a company that sets out the rights, obligations, and responsibilities of each shareholder. It is a private agreement that is not typically filed with government authorities and is not available to the public. The shareholders' agreement is designed to protect the interests of all shareholders and to prevent disputes and conflicts between them.

Post Disbursal Compliance

Post disbursal compliance refers to the set of activities and procedures that an investor or financial institution undertakes after disbursing funds to an Entity. The purpose of post disbursal compliance is to ensure that the borrower / investee company continues to meet the terms and conditions of the loan or financing agreement.

Benefits and Methodology

Benefits 

 

  • As the term sheet is drafted by the Investor, the review helps the entrepreneur to understand and visualise what the final agreement will look like.
  • Understanding the implications of each clause & sub-clause of the Term Sheet, removes confusion / doubts in the mind of the entrepreneur.
  • Any specific requirement of the Promoter, should be well thought of and inserted in the term sheet itself, this helps the entrepreneur to bring clarity to the Investor.
  • Both the parties (investor & entrepreneur) are clear on what they are signing and what to expect from each other.
  • This being the foundation/first document executed with the investor – it shall always be referred to on multiple occasions – while executing various agreements (SSA, SHA, etc.), post completion of Due Diligence (DD).
  • As the agreements are drafted by the Investor, the review helps the entrepreneur to understand the significance of each clause properly
  • All agreements are finalised after umpteen rounds of negotiation. Hence it is important that the entrepreneur knows the significant points and then negotiates on them
  • It is important for the Entrepreneur to understand what all he is giving away, and where all he needs to say no.
  • There are many covenants to the agreement. The Investee company needs to understand them properly to ensure that they are followed and adhered to.
  • A deeper understanding of the clauses helps when the Company goes for a fresh round of fundraising. He knows - what all he can offer to the new Investor.