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India
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Intermediate
The India-specific piece that names the exact trap in your answer: affirmative rights and reserved matters that let a small investor veto hiring, budgets, and your next round. It gives concrete founder-side defaults (split reserved matters into 'consent required' vs 'information only', set capex consent thresholds high enough that normal operations do not need a sign-off, refuse caps on founder pay and junior hiring) so you know what is standard vs aggressive in an Indian SHA.
Term Sheet Drafting for Indian Startups: Clauses, Compliance and 2025 to 2026 Updates
From iPleaders (LawSikho) by iPleaders editorial team 25 min read
- Reserved matters (the Indian home of affirmative rights) run 18 to 25 items; split them into 'investor consent' vs 'information only' so a 10 percent holder cannot deadlock operations
- Set consent thresholds (capex, debt) high enough that day-to-day running never needs investor sign-off, and refuse caps on founder comp and junior hiring
- Post-2022 investors push wide 'bad leaver' triggers and broad vetoes; narrow them, because in India these rights live in the binding SHA, not just the term sheet
