Our Three Step Simple Process

Get your Term Sheet reviewed in three simple steps

Engagement & Consultation

Review & Management Discussion

Suggestions and Finalisation

Benefits of independent review of Term Sheet

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).

General Terms

  • Board Seat: Any equity investor would refrain from being merely a passive investor in a company. They would like to give their valuable insight & monitor the performance of the company on a regular basis. Hence, it is imperative that they participate in the Management of the company by having a Board seat. Most of the investors insist on this as a pre-condition of investment.
  • Right of First Refusal (ROFR): While raising funds in subsequent rounds, the existing investor has the right to say yes/no as to whether they would like to participate in the current round BEFORE the offer is opened up to outside investors.
  • Anti Dilution: An anti-dilution provision is used to protect investors in the event a company issues equity at a lower valuation than in previous financing rounds (has a down round). This is designed to protect existing investors from losing ownership in the company. Consequently, additional shares are issued at negligible cost to the existing investor so as to preserve his shareholding.
  • Tag Along : This gets activated when the majority shareholder is selling its stake in a strategic / M&A deal. Being a minority investor, the investor also has the right to sell his shares along with the majority investors.
  • Drag along clause: The drag along right is designed from the entrepreneur’s perspective. At times, during an M&A or a strategic deal, the buyer insists on having 100% stake in the company. In such a situation, the majority shareholder may force the minority shareholder to sell their shares to the buyer on the same terms & conditions as those of the majority shareholder.

What all you get

Standard Package

Price on Request

all inclusive fees

  • Term Sheet Review – explaining the nuances and implications of each point of the Term Sheet (shared by the prospective Investor) to the entrepreneur in simple, lucid language
  • Max 2 evaluation per transaction
Add to Cart
Premium Package

Price on Request

all inclusive fees

  • Term Sheet Review – explaining the nuances and implications of each point of the Term Sheet (shared by the prospective Investor) to the entrepreneur in simple, lucid language
  • Max 2 evaluation per transaction
  • Suggestions as to new clauses that can be incorporated in favour of the entrepreneur / investee company
Add to Cart

1-2 weeks approx. to review the Term Sheet in detail & get the requisite changes incorporated. Steps are as below:

  • 1

    Step 1

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

     

  • 2

    Step 2

    ·         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

     

  • 3

    Step 3

    ·         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

  • 4

    Step 4

    ·         1st round of feedback shared with the entrepreneur for onward submission to the Investor

    ·         Investor will renegotiate on some of the clauses again

  • 5

    Step 5

    ·         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