Conditions subsequent (popularly known as CS) is a list of activities that investor requires a startup to complete immediately after they put in the money. This includes things like allotting shares to investors, appointing them as director and many more activities derived from the findings during investor due diligence.

The current episode of eLagaan Whiteboard Friday looks at this list and what's their impact is, and how to plan for it so that committed tasks are done on time which is critical from SHA’s implementation.

For queries: [email protected]

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Conditions precedent (popularly known as CP) is a list of activities that investor requires a startup to finish before they actually put in the money. Many tasks in this list is derived from the findings during investor due diligence.

The current episode of eLagaan Whiteboard Friday looks at this list, what's their impact is on your fund raise process and how you can try to optimize this list in order to get the investment amount earlier to your bank.

For queries: [email protected]

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Founders may need to sell their shares to 3rd parties (partly or fully) depending on their requirements. Sale of shares is a regulated process agreed with investors and other shareholders of the company.

The current episode of eLagaan Whiteboard Friday looks at what steps and proceeses needs to be followed in case founder or any other shareholder is interested in selling their shares to existing shareholders or an independent person or entity.

For queries: [email protected]

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Though Founders hold a substantial stake in the company during incorporation, they need to go through a vesting schedule to protect their interest in the company. This schedule can start from incorporation or subsequent funding rounds depending on investor negotiations.

The current episode of eLagaan Whiteboard Friday talks what founders vesting is, how the logistics of it generally works out and various scenarios in which a founder exits or get terminated.

For queries: [email protected]

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Welcome to a fresh episode of GrowthTalkies.com, a series of conversations on growth and retention which NextBigWhat has launched in partnership with WebEngage.

In this episode, we have Sumit Ghosh - running a very hot startup - Chingari app. ̛In this conversation with Ashish Sinha, Sumit shares some real candid perspectives on building a better TikTok alternative. 

What’s interesting is Sumit’s candid take on building a mature product company that can go beyond TikTok’s smart machine learning algo and the timeframe it might take to get there. 

Meanwhile, Chingari app is heavily focused on growth and retention - which is the core of #Growthtalkies conversation. 

When you raise money, the investors want the founders to stay back and run the show. Although you may have agreed for a reverse vesting schedule, but while onboarding investors they may ask for few years of lock-in for founders. This is critical from a strategic and company's perspective.

The current episode of eLagaan Whiteboard Friday talks what implications founders lock-in brings and helps you understand the implication around this clause so that you are aware and be prepared for acceptable terms.

For queries: [email protected]

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When you raise money, many times the investment may come in tranches instead of single shot. The tranches could be linked to time, milestones or both. The tranches are committed now and released when the underlying factor is complete (time/ milestone).

The current episode of eLagaan Whiteboard Friday talks about what impact the tranches could bring to your overall fund availability, the risks that you should be aware of and how you can go about it while negotiating your investment round.

For queries: [email protected]

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While raising investment, you will liquidation preferences clause in your SHA. This clause impacts how investors are paid in events of M&A (mergers & acquisition) or during liquidity of the company.

The current episode of eLagaan Whiteboard Friday talks about what factors or variables can be brought in liquidation preferences and how negotiations can be done around it with investors.

For queries: [email protected]

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For founders who are not related to each other (like husband-wife, father-son etc.) it is important to enter into Founders Agreement covering important working relationship between founders and vesting schedules for founder's share holding. This document is a must for due diligence when you are raising money from professional or institutional investors.

The current episode of eLagaan Whiteboard Friday talks about what importance of founder's agreement and what are the aspects that should be covered to make it safe for each founder & the startup.

For queries: [email protected]

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When investors come onboard, they ask for anti dilution rights to protect themselves from any down trend in valuation of the startup in future. Startup should issue additional shares for free to existing investors whenever this gets triggered.

The current episode of eLagaan Whiteboard Friday talks about what anti dilution rights are and how you can bring few dimensions to make it a close ended option for investors & startup and still be fair.

For queries: [email protected]

#startup #funding #eLagaan #nextbigwhat