Exit, but without big cheques: VCs warn India’s startup founders

Startup founders quickly learn not to take anything for granted. Least of all, their equity. Especially because, from idea to exit, it’s a wild ride with see-sawing power plays between them and their investors. 

Venture capitalists (VCs), haunted by mistakes over the last four years, are rewriting the rules. One term sheet and one clause at a time.

If Ashneer Grover of Bharatpe had to exit today over glaring corporate-governance issues in the fintech, his 9.5% stake, currently worth Rs 2,000 crore (US$240 million), would shrink to Rs 95,000. That is, if one considers the new “exit clauses” that VCs like 3one4…

Read more at
https://the-ken.com/story/exit-but-without-big-cheques-vcs-warn-indias-startup-founders/…