Equity & Venture Capital | Fueling the Next Generation
Venture Capital is the lifeblood of the innovation economy. But raising capital is complex. It involves balancing the need for funds against the risk of dilution and loss of control.
At Satyarth Legal, we bridge the gap between ambitious founders and shrewd investors. Our VC practice is fast-paced and founder-friendly. We know that in the startup world, a week’s delay in closing a round can mean missing a market opportunity.
Who Is This For?
High-Growth Startups: Raising Seed, Series A, B, or C rounds.
Venture Capital Funds: needing counsel for their portfolio investments.
Angel Networks & Syndicates: deploying pooled capital.
Corporate VCs (CVCs): Large companies investing in startups.
Scope of Services
1. Term Sheet Negotiation The Term Sheet sets the DNA of the deal. We advise you on the non-binding terms that eventually become binding nightmares if ignored:
Valuation & Dilution: Understanding the math.
Liquidation Preference: Who gets paid first if the company is sold?
Anti-Dilution: Protecting investors if the company raises money at a lower valuation later (Down Round).
2. Transaction Execution We manage the full deal flow:
Due Diligence: For investors, we conduct “Red Flag” diligence focused on IP ownership and key contracts.
Definitive Agreements: Drafting the SSA (Share Subscription Agreement) and SHA (Shareholders’ Agreement).
3. Convertible Instruments Not all money is equity. We specialize in alternative structures like CCPS (Compulsorily Convertible Preference Shares) and Convertible Notes (specifically iSAFE notes in India), which allow for faster closing without immediate valuation disputes.
4. Flipkart/Singapore Flips (Externalization) For startups looking to access global capital or list overseas, we advise on “flipping” the structure to jurisdictions like Singapore or Delaware, ensuring compliance with strict Indian tax and FEMA laws (Round Tripping rules).
Common Risks & Blind Spots
Founder Vesting: Investors will insist founders “earn” their shares over 4 years. We ensure the terms are fair and protect you from being fired and losing your own company.
Tranche Investments: Investors often want to release money in milestones. We ensure these milestones are realistic and objective, so your funding isn’t held hostage.
The “Tag-Along” Trap: We ensure that minority investor rights don’t prevent the majority from selling the company when a good offer comes.
Why Satyarth Legal?
We speak “Tech” and “Law.” We understand the difference between SaaS metrics and E-commerce inventory models. We don’t use a cookie-cutter approach. Our team ensures that the legal terms reflect the specific risks of your sector. We are known for closing rounds fast—often moving from Term Sheet to Money-in-Bank in under 30 days.