Note: The views & opinions expressed in these essays are strictly my own, and not those of any entity I may be associated with as an employee, consultant, promoter, investor, etc.ARCHIVES
Technology Entrepreneurship in India - Teams
Technology Entrepreneurship in India - Generating Revenue
Technology Entrepreneurship in India - Raising Capital
Equities, ETFs, F&O
Oct 2011: Equity Risk Premium for India
Jun 2011: Investing in Indian equities
Technology Enterprises in India
Nov 2010: Technology investment in India - WATER
Aug 2010: Technology enterprises in India - 3 avatars
Risk Capital for MSMEs
Mar 2010: Risk mitigation for investors in MSMEs
Mar 2010: Why don't (Indian) MSMEs get risk capital?
Feb 2010: Angel investing - Will it work for Indian MSMEs?
Feb 2010: What's so special about innovative MSMEs?
Feb 2010: Where do Indian/NRI (V)HNIs invest?
Feb 2010: Funding options for innovative MSMEs in India
Jan 2010: Innovative MSMEs in India
Figure out the Term Sheet
(Last revised Mar-2012, Send comments to firstname.lastname@example.org)
Technology entrepreneurs looking to raise risk capital in India should know their way around an investment term sheet. To get started, read A Guide to Venture Capital Term Sheets. There is no shortage of online content that illustrates how these terms work - it is a matter of taking the time to educate yourself. There is also a wealth of high-quality term sheets available for re-use, listed below.
It is good to understand the terms; but even more important to be aware of the many 'gotchas':
Find a mentor, an advisor, or an entrepreneur who has been there, done that - there is no substitute for experience when it comes to avoiding the above traps.
Sample Term Sheets