Why we picked it This is the clause-by-clause decoder written for Indian reality, not a US template retrofitted. It runs the founder-payout math on 1x non-participating vs participating vs predatory multiples at a $50M exit and a $15M down exit, contrasts broad-based weighted-average against full-ratchet anti-dilution with the actual conversion-price numbers ($2.40 vs $1.50), and shows the pre-money vs post-money option-pool shuffle diluting only founders. Then it layers on what US guides skip: CCPS and CCD structures, RBI pricing guidelines and the FC-GPR filing deadline, and Press Note 3, so you know which clauses are negotiable and which are regulatory.
Term Sheet Analysis: The Most Important Document You'll Sign (The Founder's Guide to Startup Funding in the Indian Ecosystem)
From The Founder's Guide to Startup Funding (Indian Ecosystem) by Niraj Kumar 35 min read
- An Indian term sheet is a CCPS/CCD instrument under FEMA, so RBI pricing rules and the FC-GPR filing shape terms that never appear in a US template
- Worked payout tables show participating preferred and full-ratchet anti-dilution can wipe out founder proceeds even on a healthy exit
- DPIIT recognition and pool sizing to real 12 to 18 month hiring needs are concrete levers to push back on the pool shuffle