37 min
Deep Dive: VC Term Sheets with Siddharth Mody Understanding VC
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- Entrepreneurship
Understanding VC is a deep dive on how venture capitalists work. In this episode, I have an insightful conversation with Siddharth Mody, a senior partner at Desai and Diwanji, a law firm based in Mumbai, India. This episode dives deep into understanding and breaking down multiple elements of a term sheet.
We talk about what is a term sheet, why it is needed, and why it is referred to as a commercial document rather than a legal document. We then explore the technical terms associated with a term sheet such as exclusivity rights, voting rights, governing laws, information rights, liquid preference, anti-dilution, break-free, full ratchet anti-dilution, and non-standard protective rights. In the later part of the episode, we talk about different ways in which a founder and promoter should approach a term sheet in terms of negotiation and red flags in the process.
Understanding VC is a deep dive on how venture capitalists work. In this episode, I have an insightful conversation with Siddharth Mody, a senior partner at Desai and Diwanji, a law firm based in Mumbai, India. This episode dives deep into understanding and breaking down multiple elements of a term sheet.
We talk about what is a term sheet, why it is needed, and why it is referred to as a commercial document rather than a legal document. We then explore the technical terms associated with a term sheet such as exclusivity rights, voting rights, governing laws, information rights, liquid preference, anti-dilution, break-free, full ratchet anti-dilution, and non-standard protective rights. In the later part of the episode, we talk about different ways in which a founder and promoter should approach a term sheet in terms of negotiation and red flags in the process.
37 min