Venture Capital Insights - Careers, Startups and Funding

Venture capital is often seen as glamorous because of unicorns and billion-dollar exits. In reality, it is a disciplined process of evaluating uncertainty, making difficult decisions with incomplete information, and supporting entrepreneurs over many years. Understanding how the system works is the first step toward becoming a better investor, founder or venture capital professional. At its core, venture capital is a way of financing innovation. It exists because some busines

A venture studio is an alternate model of launching startups. It creates a platform which creates and supports multiple businesses by pooling in resources but keeping the core of each business separate. The activities (stage-wise) in a venture studio are: 1. Validation of an idea brought in by a founder or developed by the venture studio 2. Identifying founders, co-founders & key 2-3 people 3. Initial funding till building a minimum viable product (MVP) 4.

A term sheet is a “preliminary” and a “non-binding” document which is signed between the startup and the investor. It outlines the key financial and other terms of a proposed investment. It is preliminary because investors use a term sheet to achieve a conditional agreement on key terms (such as valuation and shareholder rights) before the due diligence is carried out. Once the due-diligence is over, the term sheet forms the basis for drafting the two final investment documen

Revenue-based financing (RBF) stands as an alternative in the realm of investment options, diverging from the traditional avenues of equity-based ventures like venture capital (VC) or angel investments, as well as the more conventional debt financing options. Unlike its counterparts, RBF offers a distinctive approach, wherein a company secures capital and commits to repaying it as a percentage of its future revenue. This repayment model, intricately linked to revenue streams,

India’s venture capital ecosystem includes early-stage seed funds, sector-focused investors, and growth-stage capital providers. The landscape of venture capital firms in India spans multiple structural models depending on capital source and regulatory framework. From a structural perspective, venture capital firms in India broadly fall into three categories: LP–GP structured venture capital funds (typically regulated by SEBI) Family offices (maybe registered) Corporate ventu

Ever found yourself in a situation where you held a significant chunk of equity in a company, only to receive a minuscule portion of the proceeds upon exit? It’s a scenario that often arises due to the intricacies of investment agreements, particularly the elusive liquidation preference clause. Let’s delve into this essential aspect of venture capital deals and unravel its implications. Many entrepreneurs grapple with understanding dilution resulting from investor funding – V