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Pitch & Investor Readiness
Showing 5 of 25 articles
Drafting an India-Enforceable NDA Before You Share Your Pitch Deck
Sharing your pitch deck, financial model, or product roadmap without a properly executed Non-Disclosure Agreement is one of the riskiest moves an early-stage founder can make. This article explains how to draft an NDA that holds up in Indian courts under the Indian Contract Act, 1872, what stamp duty applies, and how Founding Legals generates a court-enforceable NDA in under 90 seconds.
Preparing for Angel Tax — Section 56(2)(viib) & DPIIT Exemption
If your startup raises money at a valuation higher than its "Fair Market Value," the excess can be taxed as income under Section 56(2)(viib) of the Income Tax Act, 1961 — the infamous "Angel Tax." This article explains how the tax works, who is exempt, and how Founding Legals helps you secure DPIIT recognition before your first cheque arrives.
The Pre-Round Data Room Checklist Every Indian Investor Will Demand
Indian VCs and angel networks conduct due diligence under tighter compliance lenses than most founders expect — covering MCA, GST, ROC, FEMA, and labour law filings. This article lists every document your data room must contain before a term sheet is signed, and shows how Founding Legals auto-organises them into an investor-ready Vault.
Convertible Notes, SAFE & iSAFE — Which Instrument to Use in India
Early-stage Indian startups raising bridge capital typically choose between Convertible Notes (CN), SAFE (Simple Agreement for Future Equity), and iSAFE (India SAFE). Each has very different legal treatment under the Companies Act, 2013 and FEMA, 1999. Picking the wrong one can disqualify your round or trigger RBI penalties. This article explains the right fit and how Founding Legals generates the correct instrument.
Term Sheet Negotiation — The 12 Indian Clauses That Matter
A term sheet is "non-binding" except for a few clauses — but it sets the legal architecture of your funding round and is 90% replicated verbatim into the Share Subscription Agreement (SSA) and Shareholders' Agreement (SHA). This article breaks down the 12 most consequential clauses an Indian founder must negotiate.