Rightly Negotiate the Terms of the Investment

Online Learning + Termsheet and Agreement Templates

Raising capital for a business is guided by some critical legal and regulatory processes. One such process which is of utmost importance to founders is that of negotiating the terms of the investment with the investor. This is done through the means of a termsheet which once finalized becomes the blueprint for the Shareholders' Agreement. The termsheet has several terms and rights which need to be understood by founders to allow them to secure their interests. This FundEnable course enables you to seamlessly navigate through a termsheet and confidently negotiate with your investor. Additionally, you will get access to FundEnable Termsheet drafts and sample template agreements for CCD, CCPS, and Safe Notes.

What You Will Learn

The FundEnable Termsheet Templates

First step towards negotiating a deal with your investors

  • Get sample termsheets for angel investment round and venture capital funding round

  • Included is the FundEnable pocketbook with detailed explanation on all terms, rights & clauses of the termsheet

  • Available in an editable word document format with highlighted sections for business specific inputs

The FundEnable Takeaways

Learning Outcomes and Using Termsheet & Agreement Templates

  • Gain detailed understanding of all terms and rights in a Termsheet

  • Understand the legalities associated with termsheet and shareholders' agreements

  • Get access to FundEnable templates of termsheet, CCD and CCPS agreements and Safe Notes

Unlock Online Learning and Termsheet & Agreement Templates

Earn a Linkedin Shareable Certificate on Completion

Get 1 Year Access for INR 1000/- only (T&C Apply)

Unlock The Complete FundEnable Toolkit

Get Access to 8 Templates + 12 Courses

  • ₹5,900.00 / year

    ₹5,900.00 / yearThe FundEnable Toolkit

    A collection of business fundraising essential resources. It contains 12 online courses providing a 360º understanding of the fundraising process along with 8 templates that are 100% customizable according to business needs.
    Unlock Toolkit

Frequently Asked Questions

  • Who pays for the legal expenses?

    Typically all the expenses related to raising capital such as legal fees, compliance fees, due-diligence fees etc. are done by the company. These expenses have to be made upfront – before the fund transfer. In rare cases, investors take up some of these expenses.

  • Are there any additional clauses in the Shareholder’s Agreement which are not a part of the termsheet?

    Addressing common questions ahead of time to save yourself and Two most important additions in the SHA are – Representations and Warranties and Indemnification. Reps and Warranties states that the facts disclosed by the company during the evaluation process are true. Indemnity clause keeps the investor protected and free from liabilities and losses which might occur due to specific events. Both these clauses are negotiated post due-diligence.

  • Is there GST applicable during share issuance?

    No. Stamp duty of 0.2% of investment amount is paid on SHA. Stam duty of 0.1% of the investment amount is paid on issuance of shares.

  • If the Founder is forced to sell his stake due to drag, will he get money for his stake sale?

    Yes, however liquidation preference clause will kick in and proceeds of the sale will be split between the founder and the investor based on liquidation preference formula.

  • Termsheet is non-binding, how do investors then ensure that founders are sticking to exclusivity clause?

    Good faith! Also, VC industry is closely knit where Partners of funds speak to each other often. In case the word goes out that a company has signed a termsheet and yet having conversation with other investors – the reputation of founders in the VC industry might get damaged. Why take that risk? You need to raise more rounds in future!

  • Do investors take personal guarantee from the founders?

    No. However, the founders should meticulously look for clauses that might force the founders to buy back the stake from the investors in case they don’t get an exit – such as the put option. Such clauses might be potentially a big problem for the personal assets of the founder.

  • What are the chances of the deal not going through post signing the termsheet?

    It all depends on the findings of the Due-Diligence exercise.

Terms & Conditions

Kindly download the entire T&C document by clicking here T&C.pdf

It is strongly recommended that users read the T&C document while purchasing the FundEnable Toolkit.

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