E53: [Legal Series] Ankita Singh (Founder, Sarvaank Associates)

Ankita is the founder of Sarvaank Associates. She brings with her a rich experience of having worked with prominent law firms as well as leading the legal and transaction team of Indian Angel Network (IAN), Asia's largest Angel Group with more than 450 HNI Investors.

While at IAN, Ankita was responsible for closing of the deals from start to finish. She played a pivotal role in handholding the Startups in further raising of funds and supporting the investors to get the right value of money. Prior to IAN, she has worked in leading law firms and gained extensive experience in advising clients on investment / restructuring transactions, mergers and acquisitions, joint ventures, exit transactions, company formation, debt transactions and company law matters. She has also worked with some of the IT juggernauts and the government together in the UIDAI Project colloquially Aadhaar.

Ankita's experience includes advising clients across sectors including amongst others, telecommunications, information technology, renewable energy, power, manufacturing, hospitality, FMCG, food, defense, space, real estate, logistics, fintech, healthtech and deep-tech companies.

Ankita is a practising lawyer since 2011 and is a qualified company secretary.

In this episode, we will cover:

1. What is a term sheet?

2. Nomenclature associated with TS for first timers

3. Who should set the term sheet?

4. Pre-money vs post-money

5. Cap-table construction early on

6. Common shares vs preferred in the term sheet

7. Exit scenarios and how to approach it in the term sheet

8. How can investors protect themselves through  favorable clause sin term sheets

9. Structuring Pro-rata rights

10. Super pro-rata and why it’s exercised

11. Conflicts with ROFR / ROFO

12. No shop clauses

13. How can founders protect their own equity

14. Voting rights & board structure on term sheet

15. Why shouldn’t founders haggle over board observer seats

16. Wrt the term sheet, what should founders be open to negotiating and letting go off?