Article · 30 min read (guide)

Decoding Term Sheets for Early-Stage Startups

Siddarth Pai, Roma Priya, Yagnesh Sanghrajka · Inc42 Free Advanced India

A practical India-specific guide to term sheets and iSAFEs, written by working Indian VCs and startup lawyers (3one4 Capital, Burgeon Law, 100X.VC). It maps global concepts onto Indian legal structures like CCPS.

  • Covers valuation, investor rights, restrictive covenants, and exit terms in the Indian context
  • Explains the iSAFE / CCPS structure and how it differs from a plain US SAFE
  • Helps founders prepare for common Indian term-sheet negotiation points
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It answers 2 questions

  1. How is raising a seed round in India different from the US?
  2. How do SAFEs and term sheets differ in India versus the US?

Read with it

  1. The definitive book on how VC deals really work, written by two Foundry Group VCs. It demystifies the term sheet term-by-term... Wiley Book · book (~300 pages) Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist Brad Feld & Jason Mendelson
  2. A leading early-stage Indian VC firm answering the questions founders wish they could ask a VC face-to-face, including how they... Prime Venture Partners Podcast Podcast · 30-50 min per episode Prime Venture Partners Podcast: Fundraising Masterclass for Founders Prime Venture Partners
  3. 100X.VC pioneered the iSAFE, India's answer to the US SAFE, and offers the standardized document plus a plain explanation.... 100X.VC Tool · template + explainer iSAFE: The Founder-Friendly Fundraising Instrument for Early-Stage Founders 100X.VC
  4. The primary source for the SAFE itself, plus YC's plain-English primer explaining post-money mechanics. Use the official... Y Combinator Tool · templates + primer YC Safe Financing Documents (Official Post-Money SAFE) Y Combinator
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