For many first-time founders, this concept is confusing because “dilution” already feels like a normal consequence of growth — every new fundraise reduces the founder’s percentage. So what exactly is “anti-dilution”? And why does it only protect investors and not founders?

When you are raising funds for your startup in India, you will likely hear the term "liquidation preference". This article will explain what liquidation preferences are, and why it matters to a first-time Indian founder.

What are the three main types of debentures in India? Debentures function as borrowings with pre-agreed repayment terms. They often carry interest obligations and a maturity period. For startups, they provide a way to access capital without instant dilution of ownership. Whether or not dilution happens later depends on the variety of debenture you choose.

This article was written by Varshinee AS, Associate, and Karthik Jayakumar, Partner. What are the typical instruments that investors use...

Discover the crucial differences between binding clauses and non-binding clauses in a term sheet. Learn how binding clauses impact founders.

This article was written by Aneesh Sudharsan, Associate, and Karthik Jayakumar, Partner. As a first-time Indian founder, you may have...

A term sheet is a preliminary document, which elaborates on the proposed terms and conditions, as mutually agreed between parties, that would form a base for the proposed transaction and the more full-blown agreements.