A. Pre-Fundraising Strategy & Structuring
- Preliminary laying down of the strategic and operational framework before actively reaching out to investors.
- Assessment of fundraising goals, business valuation, and growth projections, strategic advisory on the best funding instruments, namely equity, debt, or hybrid.
- Structuring of cap tables, founder equity, and ESOPs, while tailoring strategies for seed, series A, B, C, and others.
- Regulatory assessment, including compliance with FEMA, Companies Act, SEBI, and RBI regulations.
- Legal advisory on sectoral caps and restrictions on foreign investments, for instance, FDI in e-commerce or the FinTech industry.
B. Term Sheets & Investment Agreements
- Drafting and negotiating preliminary term sheets with investors.
- Structuring of investment agreements, including equity, convertible instruments, safe notes, venture debt, while ensuring investor protection clauses, exit strategy provisions and governance rights are part of these instruments.
C. Due Diligence & Regulatory Compliance
- Comprehensive conduct of preliminary pre-investment legal due diligence for companies, including startups.
- End-to-end assistance for investors with legal and financial due diligence.
- Proactive compliance with corporate laws, SEBI regulations, FEMA, RBI and tax laws.
- Strategic advisory on compliance benefits under Startup India, DPIIT certification, and tax exemptions as per section 80-IAC angel tax exemptions.
D. Fundraising Documentation & Contracts
- Drafting and reviewing of fundraising documentation to formalise the investment process, crucial for securing capital and developing legal framework between start-ups and investors.
- Drafting of the following agreements, including shareholders agreements, share, subscription agreements, convertible debenture agreements, notes, term sheets, and letters.
- Advisory on the structuring of stock option plans, RSU and found investing agreements.
- Absolute compliance with the ODI i.e. overseas direct investment norms for outbound investments.
E. Investor & Founder Rights Negotiation
- Strategic focus on balancing operational flexibility for founders with investment protection for investors by negotiating board control, veto rights, and liquidation preferences.
- Structuring of key investor protection clauses such as anti-dilution clauses, liquidation preferences, and voting rights.
- Advisory on founder lock-in periods, restrictions, and governance mechanisms.
F. Legal Structuring for Fundraising & Exits
- Effective legal structuring and advisory on exit strategies via IPO, secondary sales or mergers and acquisitions.
- Drafting of respective exit provisions, including drag-along and tag-along rights.
- Structuring of waterfall mechanisms, revenue sharing and liquidation rights.
G. Post-Investment Compliance & Ongoing Obligations
- Management of post-investment compliances, including ongoing statutory filings, FDI reporting, governance, disclosure requirements, managing cap table updates, dilution tracking, and share transfers.
- Operation of ongoing corporate governance and compliance with the investor agreements.
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Discover Frequently Asked Questions from Our Support
Fundraising is a multi-stage process wherein, prior to any formal understanding between the parties, it is suggested that the parties execute a Non-Disclosure Agreement, a Term Sheet, and a Letter of Intent depending on the requirements of the transaction. Subsequent to an understanding and completion of the due diligence, investment agreements such as Share Subscription Agreement, Share Purchase Agreement, and Shareholders’ Agreement should be executed between the parties.
Corrida Legal provides the services with respect to drafting of the Investment Agreement including investor rights and term sheet negotiation. Furthermore, Corrida Legal assists with legal due diligence and fundraising support.
Prior to any formal understanding between the parties, the investor is advised to conduct due diligence on the investee entity to ensure that the organisation is legally, operationally, and financially sound, and to determine the investee entity’s valuation.
Corrida Legal provides legal due diligence services to ensure that the investee entity is compliant with the corporate, employment, and intellectual property regulations thereby minimising the investment risk.
We at Corrida Legal provide the services of assisting investors in strategising their control of board, protect their financial interest, and exit options. We achieve this by implementing clauses pertaining to anti-dilution, voting rights, drag-along and tag-along provisions, and exit events.
Corrida Legal provides the services of startup due diligence and fundraising support to the investor and the investee. We further assist with the registration and compliance obligation under the FEMA and DPIIT regulations. Corrida Legal also assists with the negotiation of investment documents to ensure that the startup’s rights are protected for any potential subsequent fundraising rounds.
To ensure that a startup is Investor-ready, the entity’s operations must be internally reviewed to ensure that its legally, operationally, and financially sound and that its operations are well documented. Furthermore, the entity must ensure that documents such as the incorporation documents, shareholder documents, labour law compliance and other similar documents are well maintained and compliant with the applicable laws.
At Corrida Legal, we assist you by ensuring that the entity is legally compliant by way of conducting compliance audits, legal due diligence support, and preparation of shareholder or employment documentation to ensure you are investor-ready.