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Legal Capsule by Veyrah Law

VC SERIES: PART III – THE TERM SHEET DECODED! In the previous  article  of this series we discussed the strategy to be adopted by founders while negotiating a term sheet with a VC fund. Now, on to certain important legal terminology. It is necessary for founders to be aware of and understand the implications of the legal jargons which could impact their rights in the business. Liquidation preference First and foremost – the liquidation preference. Liquidation preference is the investors’ right to get their investment amount back before the holders of common shares (equity shares) get any returns. The common shares are usually owned by the startup’s founders and employees. The preference applies when the startup undergoes a sale of its business by way of any corporate action or it distributes profits to its shareholders. With respect to liquidation preference, the most important element for founders to be mindful of is the type of liquidation preference being demanded by the VC fund – p

Top Fintech Startup Deals: Venture Capital and M&A

Source: The Venture Intelligence PE Deal  and M&A Deal  Databases Want more deeper insights into the biggest / notable startup deals? Take a demo of our Databases here . Checkout our website for more info on Venture Intelligence's products:  ventureintelligence.com

Indian SaaS Startup Funding: Sector in a Snapshot

  Source:  The Venture Intelligence Private Equity Deal Database . Want a deeper dive into the funding data? Take a demo of our databases  here . Venture Intelligence  is India's longest-serving provider of data and analysis on Private Company Financials, Transactions (Private Equity, Venture Capital, and M&A) & their Valuations in India.

IPO-Bound Indian Startups: Key Highlights and Comparison

Source: The Venture Intelligence Private Equity Deal Database . Want a deeper dive into the financial and funding data? Take a demo of our databases here . Venture Intelligence is India's longest-serving provider of data and analysis on Private Company Financials, Transactions (Private Equity, Venture Capital, and M&A) & their Valuations in India.

Legal Capsule by Veyrah Law

TOWARDS AN INDIAN ‘MILITARY-INDUSTRIAL COMPLEX’? As of 2021, India has the second largest armed forces and the third largest defence budget in the world. However, historically, the defence sector in India has been a monopoly for public sector companies. In 2001, the defence sector was unlocked for domestic private businesses subject to certain licensing requirements. This was also the same time foreign investors were permitted to invest in the defence sector. Initially, foreign direct investment ( FDI ) was permitted up to a maximum of 26%. Over the years, the FDI cap has been substantially increased and currently stands at 100%, subject to certain conditions. More recently, due to external aggression from neighbouring states, the Government has been keen to further develop the Indian defence manufacturing sector. The thrust has been to encourage the development of indigenous solutions for its defence requirements and reduce its external dependency. In this article, we will discuss the

Cyril Amarchand Mangaldas tops League Table for Legal Advisors to M&A deals in H1 2021

Cyril Amarchand Mangaldas (CAM) topped the Venture Intelligence League Table for Legal Advisor to M&A Transactions during the first six months of 2021, advising 30 deals worth USD 14.9 Billion. CAM was followed by AZB & Partners (USD 14.6 Billion across 36 deals) and Trilegal (USD 7.7 Billion across 10 deals) in the second and third spots respectively. Khaitan & Co. (USD 7.3 Billion across 37 deals) and Shardul Amarchand Mangaldas (SAM) (USD 3.0 Billion across 10 deals) completed the top five. Among the largest deals in the period, CAM advised Adani Green Energy’s acquisition of 100% interest in SB Energy from Japan's SoftBank Group and Bharti Group for USD 3.5 Billion . AZB, CAM, and Trilegal advised Tata Digital’s acquisition of online grocery platform BigBasket for USD 1.2 Billion . AZB, SAM, Kirkland & Ellis , and Wilson Sonsini Goodrich & Rosati advised global private equity firm Apax Partners’ USD 900 million buyout of IT Services provider Infogain

Kotak Mahindra Capital tops League Table for Transaction Advisors to M&A deals in H1'21

Deloitte and ICICI Securities claim the No.2 & No.3 slots Kotak Mahindra Capital topped the Venture Intelligence League Table for Transaction Advisor to M&A Deals   during the first six months of 2021, advising 5 deals worth USD 2.7 Billion. Deloitte (USD 1.8 Billion across 3 deals) and ICICI Securities (USD 1.2 Billion across 2 deals) took the second and third spots respectively by value of deals. Ernst & Young and Phoenix Advisors (USD 1 Billion across 1 deal) took the fourth spot. Credit Suisse (USD 900 million across 1 deal) completed the top five. The  Venture Intelligence League Tables , the first such initiative exclusively tracking transactions involving India-based companies, are based on the value of PE and M&A transactions advised by Financial and Legal Advisory firms. Kotak Mahindra Capital acted as the transaction advisor to Tata Digital’s acquisition of online grocery platform BigBasket for USD 1.2 Billion  and  PharmEasy's majority stake acquisi

Legal Capsule by Veyrah Law

VC SERIES | Part II – The Term Sheet ! In the last  article   of this series, we discussed certain basic aspects to be kept in mind by founders in their run up to the first funding round. The immediate next objective would be to get a term sheet. Being offered a term sheet from a VC fund is no small feat. Till such time, all that the founders had been discussing with the VC fund was money – the amount of funding the startup needs and the possible valuation of the startup. But the term sheet comes with certain other terms and conditions – what are those terms and conditions?  Before we dive into the terms and conditions of a term sheet, it is essential to understand the timelines and strategy to deal with a term sheet. Most VC funds may imply to founders that the term sheet is a ‘take it or leave it’ offer. Is that correct? – usually not. Also, likely that the VC funds will expect the founders to execute the term sheet within a day. Will the founders not be given time to go back and che

AZB & Partners tops League Table for Legal Advisors to Private Equity deals in H1'21

CAM and Trilegal claim the No.2 & No.3 slots AZB & Partners (AZB) topped the Venture Intelligence League Table for Legal Advisor to Private Equity Transactions in H1 2021 advising deals worth USD 17.5 Billion (across 81 qualifying deals). Cyril Amarchand Mangaldas (CAM) with USD 11.8 Billion across 51 deals and Trilegal with USD 9.2 Billion across 18 deals, took the second and third spots. Khaitan & Co. (USD 6.6 Billion across 42 deals) and IndusLaw (USD 4.4 Billion across 73 deals) completed the top five. Among the largest deals in the latest quarter, AZB, Shardul Amarchand Mangaldas (SAM) , Kirkland & Ellis , and Wilson Sonsini Goodrich & Rosati advised global private equity firm Apax Partners’ USD 900 million buyout of IT Services provider Infogain. AZB, CAM, Trilegal, IndusLaw, SAM, Rajaram Legal , Veritas Legal , and L&L Partners advised food delivery unicorn Swiggy’s USD 800 million fundraise from Falcon Edge Capital, Prosus Ventures (formerly Nasp

Avendus tops League Table for Transaction Advisors to Private Equity deals in H1 2021

Avendus topped the Venture Intelligence League Table for Transaction Advisor to Private Equity Transactions during the first 6 months of 2021, advising 18 deals worth $2.2 Billion. Credit Suisse stood second advising 2 deals worth $1 Billion. Allegro Advisors (6 deals worth $760 million), Kotak Mahindra Capital ($750 million across 6 deals) and Steer Advisors ($633 million across 2 deals) completed the top five. The  Venture Intelligence League Tables , the first such initiative exclusively tracking transactions involving India-based companies, are based on the value of PE and M&A transactions advised by Financial and Legal Advisory firms. Avendus advised over half a dozen $100 million+ investments in H1'21 led by Dream11's $400 million fund raise led by TCV, D1 Capital Partners and Falcon Edge , followed by $200 million+ investments in two other Indian Unicorns : Lenskart and Zeta. Credit Suisse advised global private equity firm Apax Partners’ $900 million buyout of

Legal Capsule by Veyrah Law

VC SERIES | Part I – The First Institutional Investor ! Over the last few decades while India went through radical changes, so did the world of venture capital ( VC ) financing for start-ups. India has emerged as the hotspot for unicorns right after the US and China. Multiple investments and acquisitions are a norm in the fast-paced start-up ecosystem. While seasoned institutional investors are well versed with the legalities of VC financing, first-time founders are often struggling to find their feet in the journey. To some extent, even first-time investors in the Indian market grapple with reconciling global market standards with the nuances of the Indian market.  However, first-time investors still have an upper hand because of their in-house and external legal and business teams. To that extent, some parts of our series are directed more towards offering guidance to founders. As we share our expertise and learnings around funding rounds, we hope the series will be helpful for the f

PE investments in H1'21 rise 33% to $27 Billion

Press Release Private Equity-Venture Capital (PE-VC) investments in India rose 33% during the first 6 months of 2021 to $27.1 Billion (across 442 deals) compared to $20.4 Billion (across 433 deals) during the same period last year, shows data from  Venture Intelligence , a research service focused on private company financials, transactions, and their valuations. PE-VC investments during Q2'21, at $14.3 Billion across 215 deals, registered a 12% Q-o-Q increase (compared to the $12.8 Billion across 227 deals in Q1'21). The Q2'21 investment value also surpassed (by 2.4%) the Reliance Jio dominated Q2'20 (which saw $13.9 Billion being invested across 190 deals - of which, $9.8 Billion or 71% went into just Jio). Q2'21 witnessed 33 mega deals ($100M+ rounds) worth $11.5 Billion, compared to 12 such investments (topped by Jio) in the same period last year. The first half of 2021 saw the creation of 16 Unicorns (VC-funded startups valued at $1 Billion or more), 11 of whi