The Ashish Sinha Show

When you are raising investment, the investors will conduct a detailed due diligence on various functions of the startup. A due diligence is very different than a regular audit that your CA undertakes for sake of regulatory filings. The current episode of eLagaan Whiteboard Friday looks at what a due diligence means, how it is different than an audit and various timelines that you should be aware...

From being rejected by over 100 bankers to becoming a Unicorn in 5 years: Razorpay Journey with Harshil Mathur, Cofounder, and CEO of Razorpay. This conversation, which was recorded in 2019 covers the early days of Razorpay and the GTM plan of the company (in the early days).

If you have an Indian subsidiary, either as a cost centre or a profit centre, any international transactions done with the parent entity or any other of your own company, qualifies for transfer pricing. Transfer pricing is essentially a markup that is arrived after detailed study of multiple factors and business conditions. This markup leads to the Indian subsidiary being profitable. The current e...

If you have an Indian subsidiary, either as a cost centre or a profit centre, you need to keep it compliant under various applicable laws. These law vary from Company to FEMA to Taxation to Labour to Regulatory etc. The current episode of eLagaan Whiteboard Friday looks at applicable laws for both cost centre or a profit centre and what you should be aware of to keep your startup compliant. For qu...

If you are looking to do business in India, you can set up a company in multiple ways like Private Limited company or an LLP depending on what your objectives are - Cost centre Vs Profit Centre. The current episode of eLagaan Whiteboard Friday looks at option available to get started in India along with various tax implications that you should be aware of. For queries: hello@eLagaan.com #startup #...

Conditions subsequent (popularly known as CS) is a list of activities that investor requires a startup to complete immediately after they put in the money. This includes things like allotting shares to investors, appointing them as director and many more activities derived from the findings during investor due diligence. The current episode of eLagaan Whiteboard Friday looks at this list and what'...

Conditions precedent (popularly known as CP) is a list of activities that investor requires a startup to finish before they actually put in the money. Many tasks in this list is derived from the findings during investor due diligence. The current episode of eLagaan Whiteboard Friday looks at this list, what's their impact is on your fund raise process and how you can try to optimize this list in o...

Founders may need to sell their shares to 3rd parties (partly or fully) depending on their requirements. Sale of shares is a regulated process agreed with investors and other shareholders of the company. The current episode of eLagaan Whiteboard Friday looks at what steps and proceeses needs to be followed in case founder or any other shareholder is interested in selling their shares to existing s...

Though Founders hold a substantial stake in the company during incorporation, they need to go through a vesting schedule to protect their interest in the company. This schedule can start from incorporation or subsequent funding rounds depending on investor negotiations. The current episode of eLagaan Whiteboard Friday talks what founders vesting is, how the logistics of it generally works out and...

Welcome to a fresh episode of GrowthTalkies.com, a series of conversations on growth and retention which NextBigWhat has launched in partnership with WebEngage. In this episode, we have Sumit Ghosh - running a very hot startup - Chingari app. ̛In this conversation with Ashish Sinha, Sumit shares some real candid perspectives on building a better TikTok alternative.  What’s interesting is Sumi...

When you raise money, the investors want the founders to stay back and run the show. Although you may have agreed for a reverse vesting schedule, but while onboarding investors they may ask for few years of lock-in for founders. This is critical from a strategic and company's perspective. The current episode of eLagaan Whiteboard Friday talks what implications founders lock-in brings and helps you...

When you raise money, many times the investment may come in tranches instead of single shot. The tranches could be linked to time, milestones or both. The tranches are committed now and released when the underlying factor is complete (time/ milestone). The current episode of eLagaan Whiteboard Friday talks about what impact the tranches could bring to your overall fund availability, the risks that...

While raising investment, you will liquidation preferences clause in your SHA. This clause impacts how investors are paid in events of M&A (mergers & acquisition) or during liquidity of the company. The current episode of eLagaan Whiteboard Friday talks about what factors or variables can be brought in liquidation preferences and how negotiations can be done around it with investors. For q...

For founders who are not related to each other (like husband-wife, father-son etc.) it is important to enter into Founders Agreement covering important working relationship between founders and vesting schedules for founder's share holding. This document is a must for due diligence when you are raising money from professional or institutional investors. The current episode of eLagaan Whiteboard Fr...

When investors come onboard, they ask for anti dilution rights to protect themselves from any down trend in valuation of the startup in future. Startup should issue additional shares for free to existing investors whenever this gets triggered. The current episode of eLagaan Whiteboard Friday talks about what anti dilution rights are and how you can bring few dimensions to make it a close ended opt...

As investors come on board post investment, they need regular updates on various aspects of startup followed by review meetings. Sharing accurate MIS on agreed timelines is very important. The current episode of eLagaan Whiteboard Friday talks about the various metrics that investors look for and other data that they need for their review and evaluation purposes. For queries: hello@eLagaan.com #st...

Life of startup founders change a lot after raising money. The new investors comes on board and is also involved in many decision making and operations of the company. The current episode of eLagaan Whiteboard Friday tries to offer a glimpse of how things change and what steps founders should take to ensure smooth running of company, setting up your unique culture and maintaining great investor re...

In between term sheet and signing the SHA, every investor conducts a detailed due diligence on various aspects of a startup to ensure that they are investing in a right startup and that there will not be any surprises in future from a regulatory or legal point of view. The extent and duration of due diligence depends on the age, stage and amount of investment, but if you have prepared for it well,...

Investment is not just about valuation and stake. There are multiple avenues and opportunities where founders can strike a great deal for the startup with tactful negotiations. These options can become a bigger pain or gain during the whole lifecycle depending on how well you have handled it. The current episode of eLagaan Whiteboard Friday looks at some of these aspects and explain the impact it...

Before a startup receives the actual investment amount in their bank account, the investors, founders and startup execute a share subscription & share holders agreement (SSSHA or SHA). This is an important and elaborate legal document which is binding on all sides. The current episode of eLagaan Whiteboard Friday looks at critical components of a SHA and how it could impact not just the contro...

Term sheet is the most important strategic document that a startup gets while raising money. It is more critical than the share holding agreement or share subscription agreement (SHA or SSSHA) as all the crucial terms of the deal are agreed at term sheet stage. The current episode of eLagaan Whiteboard Friday looks at how you can go about evaluating your term sheet and what aspects can make or bre...

For every startup valuation is of paramount importance. When you are raising money, it is important to understand and know what valuation is being discussed - Pre-money or Post-money? The current episode of eLagaan Whiteboard Friday looks at both the aspects of valuation, What they are and how it impacts the stake offered to investors significantly. For queries: hello@eLagaan.com #startup #funding...

The current capital structure of the startup is called a cap table. It contains details of various stakeholders and their holdings alongwith the type of instrument they hold. It gives a clear and crisp picture of all investments made in the startup from date of incorporation till date. An authoritative piece of information that is referenced during a fund raising exercise. The current episode of e...

For startups who are raising investment, it helps to understand the ecosystem, the various stakeholders and what roles they play. It is also important to have an understanding of what factors interests an investor so that the chances of you striking a chord with them improves. The current episode of eLagaan Whiteboard Friday looks at some of these aspects and gives an insight about types of invest...

When you are trying to raise your first funding round, this episode shall help you to understand what preparations are needed before you reach out to investors. Tips and recommendations may help improve the funding potential and optimize the efforts. The current episode of eLagaan Whiteboard Friday looks at how you can receive money in shortest time possible after getting a term sheet. The su...