Template · term sheet PDF

LetsVenture Standard CCPS Term Sheet Template (India), Pre-emptive Rights clause

LetsVenture · Startup India (Government of India portal) Free Intermediate India

This is the actual term sheet most Indian angels and seed funds put in front of you, hosted on the official Startup India portal, and Clause 2.2 (Pre-emptive Rights) is precisely the pro-rata language you will be asked to sign: 'The Investors shall have a pro rata right to participate in any future issue of shares... to retain their shareholding on a fully diluted basis... on the same terms and conditions including price as offered to such third party.' Read it so you recognise the clause on sight, and note it grants the right to 'the Investors' broadly, which is exactly the wording you should narrow to a major-investor threshold before you countersign.

  • In the standard Indian term sheet the pro-rata right shows up as a 'Pre-emptive Rights' clause tied to future share issues on the same terms and price
  • The default wording grants it to all investors on the sheet, so you must edit in a cheque-size or ownership threshold to avoid the small-cheque pile-up
  • Seeing the real CCPS clause (not a US SAFE analogy) lets you negotiate the exact sentence an Indian angel will hand you
Open on startupindia.gov.in ↗

The question it answers

  1. An investor wants a pro-rata right. What am I giving up and is it standard?

Read with it

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  2. This is the piece that names the exact failure mode in your question: when your early investors all take their pro-rata, they... CRV Article · 12 min read Pro Rata Rights: A Founder's Guide to Term Sheets CRV
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