{"id":13559,"date":"2021-07-24T00:31:33","date_gmt":"2021-07-23T19:01:33","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=13559"},"modified":"2022-02-05T17:22:16","modified_gmt":"2022-02-05T11:52:16","slug":"startup-funding-documentation","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/startup-funding-documentation\/","title":{"rendered":"Start-up Funding Documentation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc45fc9a9dc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc45fc9a9dc\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#Start-up_Funding_Documentation\" title=\"Start-up Funding Documentation\">Start-up Funding Documentation<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#Brief_Introduction\" title=\"Brief Introduction\">Brief Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#STARTUP_FUNDING_DOCUMENTATION\" title=\"STARTUP FUNDING DOCUMENTATION\">STARTUP FUNDING DOCUMENTATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#REGISTRATION_CERTIFICATES\" title=\"REGISTRATION CERTIFICATES\">REGISTRATION CERTIFICATES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#SHARE_CERTIFICATES\" title=\"SHARE CERTIFICATES\">SHARE CERTIFICATES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#LICENCES_PATENTS_AND_TRADEMARKS\" title=\"LICENCES, PATENTS, AND TRADEMARKS \n\">LICENCES, PATENTS, AND TRADEMARKS \n<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#COMPLIANCE_FILE\" title=\"COMPLIANCE FILE\">COMPLIANCE FILE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#FINANCIAL_STATEMENTS\" title=\"FINANCIAL STATEMENTS\">FINANCIAL STATEMENTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#CONFIDENTIALITY_AGREEMENTS\" title=\"CONFIDENTIALITY AGREEMENTS\">CONFIDENTIALITY AGREEMENTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#BUSINESS_PLAN_OR_PITCH_DOCUMENT\" title=\"BUSINESS PLAN OR PITCH DOCUMENT\">BUSINESS PLAN OR PITCH DOCUMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#VALUATION_REPORTS\" title=\"VALUATION REPORTS\">VALUATION REPORTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#TERM_SHEET\" title=\"TERM SHEET\">TERM SHEET<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#DUE-DILIGENCE\" title=\"DUE-DILIGENCE\">DUE-DILIGENCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#AUTHORISED_CAPITAL_INCREASE\" title=\"AUTHORISED CAPITAL INCREASE\">AUTHORISED CAPITAL INCREASE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#SHAREHOLDERS_DEFINITIVE_AGREEMENT\" title=\"SHAREHOLDERS DEFINITIVE AGREEMENT\">SHAREHOLDERS DEFINITIVE AGREEMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#EMPLOYMENT_AGREEMENT\" title=\"EMPLOYMENT AGREEMENT\">EMPLOYMENT AGREEMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#AMENDMENT_OF_AOA_AND_SHARE_CERTIFICATES\" title=\"AMENDMENT OF AOA AND SHARE CERTIFICATES\">AMENDMENT OF AOA AND SHARE CERTIFICATES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/startup-funding-documentation\/#INVESTOR_RELATION_REPORTS\" title=\"INVESTOR RELATION REPORTS\">INVESTOR RELATION REPORTS<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/STARTUP-FUNDING-DOCUMENTATION.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13571\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/STARTUP-FUNDING-DOCUMENTATION.jpg\" alt=\"STARTUP FUNDING DOCUMENTATION\" width=\"978\" height=\"651\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Start-up_Funding_Documentation\"><\/span><a style=\"font-size: 16px;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/businesscorporate-doctor-we-will-tell-you-how-to-fix-your-business-issues\/\"><strong><span style=\"font-family: Helvetica, sans-serif; text-align: center; font-size: 16px; color: #ff0000;\">Start-up Funding Documentation<\/span><\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Brief_Introduction\"><\/span><span style=\"color: #000080;\"><strong><span style=\"font-size: 16px;\">Brief Introduction<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In this Start-up Era, brilliant business ideas enhance value addition to society. it&#8217;s rightly said the first mover reap good advantage.<\/p>\n<p>After comparing the millennial classics in the Food tech space namely &#8211; Swiggy &amp; Zomato food delivery, we can conclude that they made an interesting contribution. Ideas generated and executed finely are clad to be a necessity within the lifestyle of recent India.<\/p>\n<p>Popularly such a start-up is termed a Unicorns, which implies their valuation has surpassed USD 1 Billion. If they&#8217;d waited a bit longer to execute ideas, their names wouldn&#8217;t be the talk of the town.<\/p>\n<p>But this can be only 1 part of the story, what makes these companies truly valuable is the value perceived by their Investors because these are unlisted Companies, and also the public cannot invest in these start-ups.<\/p>\n<p>Elite Individuals or firms whom we call Angel Investors, Private Equity,\u00a0venture capital, and Investment bankers pick and\u00a0value more highly to\u00a0invest in such innovative and revolutionizing start-ups.<\/p>\n<p>In the case of Swiggy \u2013 they raised USD 2.2 Billion till April 2021, which comprises of first funding was USD 2 Million (Series A) and later in series J. Every round of funding, the start-up had to convince its investor with not only its business plan but also the governance of the corporate and legal documentation.<\/p>\n<figure id=\"attachment_13561\" aria-describedby=\"caption-attachment-13561\" style=\"width: 981px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/Picture2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13561\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/Picture2.jpg\" alt=\"STARTUP FUNDING DOCUMENTATION\" width=\"981\" height=\"773\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/Picture2.jpg 602w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/Picture2-300x237.jpg 300w\" sizes=\"(max-width: 981px) 100vw, 981px\" \/><\/a><figcaption id=\"caption-attachment-13561\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">STARTUP FUNDING DOCUMENTATION<\/span><\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"STARTUP_FUNDING_DOCUMENTATION\"><\/span><span style=\"color: #ff0000;\">STARTUP FUNDING DOCUMENTATION<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"REGISTRATION_CERTIFICATES\"><\/span><span style=\"color: #000080;\"><strong>REGISTRATION CERTIFICATES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>These are the source documents for your company and\u00a0should\u00a0be maintained and updated\u00a0at all\u00a0times.<\/p>\n<figure id=\"attachment_13562\" aria-describedby=\"caption-attachment-13562\" style=\"width: 984px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/STARTUP-FUNDING-DOCUMENTATION-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13562\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/STARTUP-FUNDING-DOCUMENTATION-2.jpg\" alt=\"STARTUP FUNDING DOCUMENTATION 2\" width=\"984\" height=\"243\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/STARTUP-FUNDING-DOCUMENTATION-2.jpg 602w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/STARTUP-FUNDING-DOCUMENTATION-2-300x74.jpg 300w\" sizes=\"(max-width: 984px) 100vw, 984px\" \/><\/a><figcaption id=\"caption-attachment-13562\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">STARTUP FUNDING DOCUMENTATION 2<\/span><\/figcaption><\/figure>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"SHARE_CERTIFICATES\"><\/span><span style=\"color: #000080;\"><strong>SHARE CERTIFICATES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Share Certificates are important documents that entitle ownership of the corporate to the shareholders or the promoters. Any inconsistency can cost the corporate additional fees like stamping or franking costs and logistics.<br \/>\nUsual issues are when: &#8211;<\/p>\n<figure id=\"attachment_13563\" aria-describedby=\"caption-attachment-13563\" style=\"width: 974px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/SHARE-CERTIFICATES-3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13563\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/SHARE-CERTIFICATES-3.jpg\" alt=\"SHARE CERTIFICATES \" width=\"974\" height=\"383\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/SHARE-CERTIFICATES-3.jpg 487w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/SHARE-CERTIFICATES-3-300x118.jpg 300w\" sizes=\"(max-width: 974px) 100vw, 974px\" \/><\/a><figcaption id=\"caption-attachment-13563\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">SHARE CERTIFICATES<\/span><\/figcaption><\/figure>\n<ol start=\"3\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"LICENCES_PATENTS_AND_TRADEMARKS\"><\/span><strong><span style=\"color: #000080;\">LICENCES, PATENTS, AND TRADEMARKS<\/span><br \/>\n<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Every Start-up now derives most of its value from the holding (IP) that it possesses. Some of them could be as follows \u2013<\/p>\n<figure id=\"attachment_13564\" aria-describedby=\"caption-attachment-13564\" style=\"width: 963px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/LICENCES-PATENTS-AND-TRADEMARKS.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13564\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/LICENCES-PATENTS-AND-TRADEMARKS.jpg\" alt=\"LICENCES, PATENTS AND TRADEMARKS\" width=\"963\" height=\"91\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/LICENCES-PATENTS-AND-TRADEMARKS.jpg 602w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/LICENCES-PATENTS-AND-TRADEMARKS-300x28.jpg 300w\" sizes=\"(max-width: 963px) 100vw, 963px\" \/><\/a><figcaption id=\"caption-attachment-13564\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">LICENCES, PATENTS AND TRADEMARKS<\/span><\/figcaption><\/figure>\n<p>It is necessary that the start-up protects its IPs by registering a patent or copyright or trademark with relevant authorities looking at the geography within which they&#8217;re operating and maintaining such certificates.<\/p>\n<ol start=\"4\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"COMPLIANCE_FILE\"><\/span><span style=\"color: #000080;\"><strong>COMPLIANCE FILE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Now that you just have all basic registration documentation in hand, the next step is that they maintain a monthly tracker and compliance file to make sure that each regulatory requirement is taken care of and recorded regularly. Any compliance lapse may result in: &#8211;<\/p>\n<ol start=\"5\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"FINANCIAL_STATEMENTS\"><\/span><span style=\"color: #000080;\"><strong>FINANCIAL STATEMENTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Financial Statements are an absolute necessary set of reports which depict the performance of\u00a0an organization. Basic statements included here are.<\/p>\n<ol start=\"6\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"CONFIDENTIALITY_AGREEMENTS\"><\/span><span style=\"color: #000080;\"><strong>CONFIDENTIALITY AGREEMENTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Most often start-ups assume that customer data, formulas, processes, and techniques aren&#8217;t critical for creating or breaking the venture. However, it&#8217;s found that these secrets are the explanation for the start-up being successful.<\/p>\n<p>So, it&#8217;s necessary that employees, consultants, and prospective investors with whom sensitive data would be shared must be covered by a well-drafted Non-Disclosure Agreement. It is advisable to get the same signed by NDA, before sharing the same with an investor.<\/p>\n<figure id=\"attachment_13565\" aria-describedby=\"caption-attachment-13565\" style=\"width: 963px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/COMPLIANCE-FILE.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13565\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/COMPLIANCE-FILE.jpg\" alt=\"COMPLIANCE FILE\" width=\"963\" height=\"323\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/COMPLIANCE-FILE.jpg 510w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/COMPLIANCE-FILE-300x101.jpg 300w\" sizes=\"(max-width: 963px) 100vw, 963px\" \/><\/a><figcaption id=\"caption-attachment-13565\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">COMPLIANCE FILE<\/span><\/figcaption><\/figure>\n<ol start=\"7\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"BUSINESS_PLAN_OR_PITCH_DOCUMENT\"><\/span><span style=\"color: #000080;\"><strong>BUSINESS PLAN OR PITCH DOCUMENT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Pitch Document is a politician presentation about your business to the investors. It is a straightforward PPT that defines the following aspects of your business.<\/p>\n<figure id=\"attachment_13567\" aria-describedby=\"caption-attachment-13567\" style=\"width: 968px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/BUSINESS-PLAN-OR-PITCH-DOCUMENT.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13567\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/BUSINESS-PLAN-OR-PITCH-DOCUMENT.jpg\" alt=\"BUSINESS PLAN OR PITCH DOCUMENT\" width=\"968\" height=\"572\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/BUSINESS-PLAN-OR-PITCH-DOCUMENT.jpg 582w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/BUSINESS-PLAN-OR-PITCH-DOCUMENT-300x177.jpg 300w\" sizes=\"(max-width: 968px) 100vw, 968px\" \/><\/a><figcaption id=\"caption-attachment-13567\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">BUSINESS PLAN OR PITCH DOCUMENT<\/span><\/figcaption><\/figure>\n<p>A pitch document should convince an investor that\u00a0it&#8217;s\u00a0a winning idea and also\u00a0that you just\u00a0have\u00a0the most effective\u00a0team to execute it.<\/p>\n<ol start=\"8\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"VALUATION_REPORTS\"><\/span><span style=\"color: #000080;\"><strong>VALUATION REPORTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<figure id=\"attachment_13569\" aria-describedby=\"caption-attachment-13569\" style=\"width: 962px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/VALUATION-REPORTS.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13569\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/VALUATION-REPORTS.jpg\" alt=\"VALUATION REPORTS\" width=\"962\" height=\"672\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/VALUATION-REPORTS.jpg 601w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/07\/VALUATION-REPORTS-300x210.jpg 300w\" sizes=\"(max-width: 962px) 100vw, 962px\" \/><\/a><figcaption id=\"caption-attachment-13569\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">VALUATION REPORTS<\/span><\/figcaption><\/figure>\n<p>As per the Companies Act 2013, Enterprise and Share Valuation should be performed by a registered valuer, approved by IBBI. The Start-up can get its company valued which can help it to form a more robust pitch document and help promoters to determine dilution in shareholdings. Commonly used methods of valuations are.<\/p>\n<ol start=\"9\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"TERM_SHEET\"><\/span><span style=\"color: #000080;\"><strong>TERM SHEET<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Now that you simply have followed all the steps in getting your company ready, you&#8217;ll be able to now approach a possible investor. Once you have got generated enough interest with the investor, the investor will ask you to sign a term sheet to transfer money in tranches. this can be like signing a purchase agreement while buying a property. The term sheet basically includes the following aspects &#8211;<\/p>\n<ol start=\"10\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"DUE-DILIGENCE\"><\/span><span style=\"color: #000080;\"><strong>DUE-DILIGENCE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>When you have signed a term sheet, it contains various terms and conditions supported by which the investor will release funds.<\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #ff9900;\">Types of Due- diligence<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><strong>Financial Due Diligence<\/strong><\/li>\n<li><strong>Legal Due Diligence<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"11\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"AUTHORISED_CAPITAL_INCREASE\"><\/span><span style=\"color: #000080;\"><strong>AUTHORISED CAPITAL INCREASE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Hola! Once the investor has agreed to fund your venture, the opening move is to approach your Company Secretary to hold out the secretarial compliance process, namely.<\/p>\n<ol start=\"12\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"SHAREHOLDERS_DEFINITIVE_AGREEMENT\"><\/span><span style=\"color: #000080;\"><strong>SHAREHOLDERS DEFINITIVE AGREEMENT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>This can be called with different terms like Debenture holders\u2019 Definitive agreement etc. This agreement is the foremost important document binding the investors and therefore the promoters here onwards. Most of the days it&#8217;ll be an extension of the Term sheet running into several pages and having intricate details. Some points that may be additionally included maybe<\/p>\n<ol start=\"13\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"EMPLOYMENT_AGREEMENT\"><\/span><span style=\"color: #000080;\"><strong>EMPLOYMENT AGREEMENT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Most of the investors demand a good contract with the founders within the term sheet. this is often to shield the interest of the investors and to induce future commitment from founders. Usual terms which will be included here are<\/p>\n<ol start=\"14\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"AMENDMENT_OF_AOA_AND_SHARE_CERTIFICATES\"><\/span><span style=\"color: #000080;\"><strong>AMENDMENT OF AOA AND SHARE CERTIFICATES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Now that the legal process is complete,\u00a0the corporate\u00a0secretary\u00a0should\u00a0complete the allotment process, which involves<\/p>\n<ol start=\"15\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"INVESTOR_RELATION_REPORTS\"><\/span><span style=\"color: #000080;\"><strong>INVESTOR RELATION REPORTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">Now that you just have successfully completed the round of funding which could usually take 3 \u2013 9 months to execute, it&#8217;s pertinent to require the care of investors by adhering to the conditions mentioned within the definitive agreement and also following best practices. <\/span><\/p>\n<p><span style=\"color: #000000;\">Providing regular reports on the development of the corporate or project can motivate investors to pump in additional. a number of the reports maybe<\/span><\/p>\n<p><strong><span style=\"color: #ff9900;\">Monthly Quarterly performance report<\/span><\/strong><\/p>\n<ul>\n<li><strong>Compliance Reports<\/strong><\/li>\n<li><strong>Project report<\/strong><\/li>\n<\/ul>\n<p>Popular blog:-<\/p>\n<ul>\n<li><em>\u00a0<a href=\"https:\/\/carajput.com\/blog\/legal-documents-required-for-running-business\/\">Legal documents required for running Business<\/a><\/em><\/li>\n<li><em><strong>\u00a0<\/strong><a href=\"https:\/\/carajput.com\/blog\/benefits-of-start-ups-under-the-startup-india-scheme\/\">Advantages and know details\u00a0 about Startup India Scheme<\/a><\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Start-up Funding Documentation Brief Introduction In this Start-up Era, brilliant business ideas enhance value addition to society. it&#8217;s rightly said the first mover reap good advantage. After comparing the millennial classics in the Food tech space namely &#8211; Swiggy &amp; Zomato food delivery, we can conclude that they made an interesting contribution. Ideas generated and &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9635],"tags":[9984],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/13559"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=13559"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/13559\/revisions"}],"predecessor-version":[{"id":21872,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/13559\/revisions\/21872"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=13559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=13559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=13559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}