{"id":3772,"date":"2021-07-25T06:13:18","date_gmt":"2021-07-25T06:13:18","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=3772"},"modified":"2023-01-30T18:05:31","modified_gmt":"2023-01-30T18:05:31","slug":"documentation-for-a-startup-before-after-investment","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/documentation-for-a-startup-before-after-investment\/","title":{"rendered":"Documentation For A Startup Before &#038; After Investment"},"content":{"rendered":"<figure id=\"attachment_3773\" aria-describedby=\"caption-attachment-3773\" style=\"width: 968px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/DOCUMENTATION-FOR-A-STARTUP-BEFORE-AFTER-INVESTMENT.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3773\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/DOCUMENTATION-FOR-A-STARTUP-BEFORE-AFTER-INVESTMENT.jpg\" alt=\"DOCUMENTATION FOR A STARTUP BEFORE &amp; AFTER INVESTMENT\" width=\"968\" height=\"645\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/DOCUMENTATION-FOR-A-STARTUP-BEFORE-AFTER-INVESTMENT.jpg 750w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/DOCUMENTATION-FOR-A-STARTUP-BEFORE-AFTER-INVESTMENT-300x200.jpg 300w\" sizes=\"(max-width: 968px) 100vw, 968px\" \/><\/a><figcaption id=\"caption-attachment-3773\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">DOCUMENTATION FOR A STARTUP BEFORE &amp; AFTER INVESTMENT<\/span><\/figcaption><\/figure>\n<p><strong>FUNDING MANTRA: DOCUMENTATION FOR A STARTUP BEFORE AND AFTER INVESTMENT<\/strong><\/p>\n<ul>\n<li>Brilliant company ideas provide value to society in this era of startups. The early bird gets the worm, as the saying goes.<\/li>\n<li>Comparing millennial classics in the food tech field, such as Swiggy and Zomato food delivery, had a significant impact. The ability to conceive and implement well-executed ideas has become a necessity in New India&#8217;s way of life. Unicorns are startups that have a market capitalization of more than one billion dollars. Their names would not be the talk of the town if they had waited a little longer to put their ideas into action.<\/li>\n<li>But this is only part of the tale; what makes these businesses genuinely lucrative is the value seen by their investors, as these are unlisted businesses that the general public cannot invest in.<\/li>\n<li>Angel Investors, Private Equity, Venture Capital, and Investment Bankers are elite individuals or businesses that select and invest in such unique and revolutionary startups.<\/li>\n<li>Take, for example, the USD 2.2 billion raised (through April 2021). Swiggy raised USD 2 million in Series A fundraising and is now in Series J. Every round of investment required the firm to persuade its investor not just of its business concept, but also of the company&#8217;s governance and legal documents.<\/li>\n<li>In this post, we&#8217;ll go over numerous documentation tasks that a business must maintain and provide to potential investors in order to close a deal.<\/li>\n<li>Pre-Funding and Post-Funding documentation has been separated. For the Startup&#8217;s healthy growth, it is necessary to continue this activity with rigor, ensuring that all compliance is met on a regular basis.<\/li>\n<\/ul>\n<figure id=\"attachment_3776\" aria-describedby=\"caption-attachment-3776\" style=\"width: 969px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3776\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture1.jpg\" alt=\"Pre-Funding and Post-Funding documentation \" width=\"969\" height=\"780\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture1.jpg 650w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture1-300x241.jpg 300w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/a><figcaption id=\"caption-attachment-3776\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Pre-Funding and Post-Funding documentation<\/span><\/figcaption><\/figure>\n<ol>\n<li><strong> CERTIFICATES OF REGISTRATION<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">These are your company&#8217;s source documents, and they must be kept up to date at all times.<\/p>\n<figure id=\"attachment_3777\" aria-describedby=\"caption-attachment-3777\" style=\"width: 966px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Pre-Funding-and-Post-Funding-documentation-..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3777\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Pre-Funding-and-Post-Funding-documentation-..jpg\" alt=\"CERTIFICATES OF REGISTRATION\" width=\"966\" height=\"261\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Pre-Funding-and-Post-Funding-documentation-..jpg 622w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Pre-Funding-and-Post-Funding-documentation-.-300x81.jpg 300w\" sizes=\"(max-width: 966px) 100vw, 966px\" \/><\/a><figcaption id=\"caption-attachment-3777\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">CERTIFICATES OF REGISTRATION<\/span><\/figcaption><\/figure>\n<ol start=\"2\">\n<li><strong> SHARE CERTIFICATES<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Share certificates are significant documents that grant shareholders or promoters ownership of a firm. Any irregularity can result in additional expenditures, such as stamping or franking fees, as well as logistics.<\/p>\n<p style=\"padding-left: 40px;\">The most common problems occur when<\/p>\n<figure id=\"attachment_3779\" aria-describedby=\"caption-attachment-3779\" style=\"width: 957px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3779\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture3.jpg\" alt=\"SHARE CERTIFICATES\" width=\"957\" height=\"409\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture3.jpg 646w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture3-300x128.jpg 300w\" sizes=\"(max-width: 957px) 100vw, 957px\" \/><\/a><figcaption id=\"caption-attachment-3779\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">SHARE CERTIFICATES<\/span><\/figcaption><\/figure>\n<ol start=\"3\">\n<li><strong> TRADEMARKS, LICENCES, AND PATENTS<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Every startup currently derives the majority of its value from its intellectual property (IP). It can be, to name a few. :-<\/p>\n<figure id=\"attachment_3780\" aria-describedby=\"caption-attachment-3780\" style=\"width: 973px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture4-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3780\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture4-1.jpg\" alt=\"TRADEMARKS, LICENCES AND PATENTS\" width=\"973\" height=\"249\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture4-1.jpg 750w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture4-1-300x77.jpg 300w\" sizes=\"(max-width: 973px) 100vw, 973px\" \/><\/a><figcaption id=\"caption-attachment-3780\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">TRADEMARKS, LICENCES AND PATENTS<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\">It is essential that the company safeguards its intellectual property by registering a patent, copyright, or trademark with the appropriate authorities in the jurisdiction in which they operate and maintaining such certifications.<\/p>\n<ol start=\"4\">\n<li><strong> FILE OF COMPLIANCE<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Now that you have all of the necessary registration paperwork, the following step is to keep a monthly tracker and compliance file to ensure that all regulatory requirements are met and reported on a regular basis. Any breakdown in compliance can lead to:-<\/p>\n<figure id=\"attachment_3781\" aria-describedby=\"caption-attachment-3781\" style=\"width: 977px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture5-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3781\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture5-1.jpg\" alt=\"FILE OF COMPLIANCE\" width=\"977\" height=\"362\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture5-1.jpg 556w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Picture5-1-300x111.jpg 300w\" sizes=\"(max-width: 977px) 100vw, 977px\" \/><\/a><figcaption id=\"caption-attachment-3781\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">FILE OF COMPLIANCE<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\"><strong>FINANCIAL STATEMENTS\u00a0<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Financial Statements are an essential set of reports that represent a company&#8217;s performance. The following are some basic assertions.<\/p>\n<figure id=\"attachment_3782\" aria-describedby=\"caption-attachment-3782\" style=\"width: 938px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/FINANCIAL-STATEMENTS.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3782\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/FINANCIAL-STATEMENTS.jpg\" alt=\"FINANCIAL STATEMENTS \" width=\"938\" height=\"938\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/FINANCIAL-STATEMENTS.jpg 416w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/FINANCIAL-STATEMENTS-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/FINANCIAL-STATEMENTS-150x150.jpg 150w\" sizes=\"(max-width: 938px) 100vw, 938px\" \/><\/a><figcaption id=\"caption-attachment-3782\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">FINANCIAL STATEMENTS<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\"><strong>CONFIDENTIALITY AGREEMENTS (No. 6)<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Most entrepreneurs believe that consumer data, formulae, processes, and strategies aren&#8217;t vital to the success or failure of their business. These secrets, however, are discovered to be the reason for the startup&#8217;s success. Employees, consultants, and potential investors with whom sensitive material will be discussed must all be protected by a well-drafted Non-Disclosure Agreement.<\/p>\n<p style=\"padding-left: 40px;\">Before exchanging information with an investor, always obtain an NDA signed.<\/p>\n<ol start=\"7\">\n<li><strong> PITCH DOCUMENT OR BUSINESS PLAN<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">A pitch document is an official presentation to investors about your company. It might be a simple PPT that outlines the following features of your company.<\/p>\n<figure id=\"attachment_3783\" aria-describedby=\"caption-attachment-3783\" style=\"width: 964px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/PITCH-DOCUMENT-OR-BUSINESS-PLAN.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3783\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/PITCH-DOCUMENT-OR-BUSINESS-PLAN.jpg\" alt=\"PITCH DOCUMENT OR BUSINESS PLAN\" width=\"964\" height=\"570\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/PITCH-DOCUMENT-OR-BUSINESS-PLAN.jpg 582w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/PITCH-DOCUMENT-OR-BUSINESS-PLAN-300x177.jpg 300w\" sizes=\"(max-width: 964px) 100vw, 964px\" \/><\/a><figcaption id=\"caption-attachment-3783\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">PITCH DOCUMENT OR BUSINESS PLAN<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\">A pitch document should persuade an investor that your idea is a good one and that you have the finest team to carry it out.<\/p>\n<p style=\"padding-left: 40px;\"><strong>REPORTS ON VALUATION<\/strong><\/p>\n<p style=\"padding-left: 40px;\">According to the Companies Act of 2013, Enterprise and Share Valuation must be carried out by a registered valuer who has been approved by the IBBI. The startup can have its firm valued, which will aid it in creating a better pitch document and assisting promoters in deciding on shareholder dilution. The following are some of the most commonly used valuation methodologies.<\/p>\n<figure id=\"attachment_3784\" aria-describedby=\"caption-attachment-3784\" style=\"width: 954px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/REPORTS-ON-VALUATION.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3784\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/REPORTS-ON-VALUATION.jpg\" alt=\"REPORTS ON VALUATION\" width=\"954\" height=\"631\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/REPORTS-ON-VALUATION.jpg 594w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/REPORTS-ON-VALUATION-300x198.jpg 300w\" sizes=\"(max-width: 954px) 100vw, 954px\" \/><\/a><figcaption id=\"caption-attachment-3784\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">REPORTS ON VALUATION<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\"><strong>TERM SHEET\u00a0<\/strong><\/p>\n<p style=\"padding-left: 40px;\">You can now approach a potential investor after you&#8217;ve completed all of the processes in making your firm ready. Once you&#8217;ve piqued the investor&#8217;s interest, you&#8217;ll be asked to sign a term sheet authorizing the transfer of funds in installments. This is similar to signing a purchase agreement when purchasing a home. The following are some of the aspects that a term sheet will include (including but not exhaustive).<\/p>\n<figure id=\"attachment_3786\" aria-describedby=\"caption-attachment-3786\" style=\"width: 969px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/TERM-SHEET.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3786\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/TERM-SHEET.jpg\" alt=\"TERM SHEET \" width=\"969\" height=\"511\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/TERM-SHEET.jpg 607w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/TERM-SHEET-300x158.jpg 300w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/a><figcaption id=\"caption-attachment-3786\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">TERM SHEET<\/span><\/figcaption><\/figure>\n<h4><strong>10. DUE-DILIGENCE<\/strong><\/h4>\n<p style=\"padding-left: 40px;\">When you have signed a term sheet, it contains various terms and conditions based on which investor will release funds. Due diligence is one such condition which investors always include<\/p>\n<p style=\"padding-left: 40px;\"><strong>Types of Due- diligence<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong>A. Financial Due Diligence<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5305\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/financial-due-diligence-services-2pngn48knlj3.png\" alt=\"financial-due-diligence\" width=\"1017\" height=\"870\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/financial-due-diligence-services-2pngn48knlj3.png 1017w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/financial-due-diligence-services-2pngn48knlj3-300x257.png 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/financial-due-diligence-services-2pngn48knlj3-768x657.png 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/financial-due-diligence-services-2pngn48knlj3-800x684.png 800w\" sizes=\"(max-width: 1017px) 100vw, 1017px\" \/><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<p><figure id=\"attachment_3788\" aria-describedby=\"caption-attachment-3788\" style=\"width: 935px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Financial-Due-Diligence.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3788\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Financial-Due-Diligence.jpg\" alt=\"Financial Due Diligence\" width=\"935\" height=\"480\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Financial-Due-Diligence.jpg 602w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Financial-Due-Diligence-300x154.jpg 300w\" sizes=\"(max-width: 935px) 100vw, 935px\" \/><\/a><figcaption id=\"caption-attachment-3788\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Financial Due Diligence<\/span><\/figcaption><\/figure><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\"><strong>B. Legal Due Diligence<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5303\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/4194621pnglf9h9fgp.png\" alt=\"Legal Due diligence\" width=\"958\" height=\"525\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/4194621pnglf9h9fgp.png 635w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/4194621pnglf9h9fgp-300x164.png 300w\" sizes=\"(max-width: 958px) 100vw, 958px\" \/><\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_3789\" aria-describedby=\"caption-attachment-3789\" style=\"width: 919px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Legal-Due-Diligence.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3789\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Legal-Due-Diligence.jpg\" alt=\"Legal Due Diligence\" width=\"919\" height=\"390\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Legal-Due-Diligence.jpg 504w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Legal-Due-Diligence-300x127.jpg 300w\" sizes=\"(max-width: 919px) 100vw, 919px\" \/><\/a><figcaption id=\"caption-attachment-3789\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Legal Due Diligence<\/span><\/figcaption><\/figure>\n<ol>\n<li style=\"list-style-type: none;\">\u00a0C. <strong>Authorized capital increase<\/strong><\/li>\n<\/ol>\n<figure id=\"attachment_3790\" aria-describedby=\"caption-attachment-3790\" style=\"width: 949px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Authorized-capital-increase.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3790\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Authorized-capital-increase.jpg\" alt=\"Authorized capital increase \" width=\"949\" height=\"337\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Authorized-capital-increase.jpg 580w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Authorized-capital-increase-300x107.jpg 300w\" sizes=\"(max-width: 949px) 100vw, 949px\" \/><\/a><figcaption id=\"caption-attachment-3790\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Authorized capital increase<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\">Hola! When an investor agrees to fund your initiative, the first step is to contact your Company Secretary to complete the secretarial compliance process, which includes.<\/p>\n<ol start=\"12\">\n<li><strong> SHAREHOLDERS DEFINITIVE AGREEMENT<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">This might be referred to by a variety of terms, such as Debenture holders Definitive Agreement, and so on. From here on out, this agreement will be the most crucial instrument tying the investors and promoters. The majority of the time, it will be an extension of a term sheet that spans many pages and has several intricate details. Some more points that could be mentioned are:<\/p>\n<figure id=\"attachment_3791\" aria-describedby=\"caption-attachment-3791\" style=\"width: 955px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/SHAREHOLDERS-DEFINITIVE-AGREEMENT.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3791\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/SHAREHOLDERS-DEFINITIVE-AGREEMENT.jpg\" alt=\"SHAREHOLDERS DEFINITIVE AGREEMENT\" width=\"955\" height=\"577\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/SHAREHOLDERS-DEFINITIVE-AGREEMENT.jpg 591w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/SHAREHOLDERS-DEFINITIVE-AGREEMENT-300x181.jpg 300w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><\/a><figcaption id=\"caption-attachment-3791\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">SHAREHOLDERS DEFINITIVE AGREEMENT<\/span><\/figcaption><\/figure>\n<ol start=\"13\">\n<li><strong> EMPLOYMENT CONTRACT<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">In the term sheet, the majority of investors want a strict employment agreement with the founders. This is done to protect the interests of investors and to encourage founders to commit for the long term. The following are examples of common terms that can be used here:<\/p>\n<figure id=\"attachment_3792\" aria-describedby=\"caption-attachment-3792\" style=\"width: 969px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/EMPLOYMENT-CONTRACT.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3792\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/EMPLOYMENT-CONTRACT.jpg\" alt=\"EMPLOYMENT CONTRACT\" width=\"969\" height=\"393\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/EMPLOYMENT-CONTRACT.jpg 582w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/EMPLOYMENT-CONTRACT-300x121.jpg 300w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/a><figcaption id=\"caption-attachment-3792\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">EMPLOYMENT CONTRACT<\/span><\/figcaption><\/figure>\n<p style=\"padding-left: 40px;\"><strong>Following the investment or funding, there is a process to follow.<\/strong><\/p>\n<p style=\"padding-left: 40px;\">You still can&#8217;t use the money you got from investors in your first round of fundraising. According to the Companies Act of 2013, monies can only be used by the firm after allotment of shares or securities; until then, they must be retained in an escrow account.<\/p>\n<p style=\"padding-left: 40px;\">As a result, post-investment compliance with the term sheet and the Act is required.<\/p>\n<ol start=\"14\">\n<li><strong> Modifications to the AOA and SHARE CERTIFICATES<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">After the legal process is finished, the company secretary must complete the allotment process, which entails a number of steps.<\/p>\n<figure id=\"attachment_3793\" aria-describedby=\"caption-attachment-3793\" style=\"width: 969px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Modifications-to-the-AOA-and-SHARE-CERTIFICATES.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3793\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Modifications-to-the-AOA-and-SHARE-CERTIFICATES.jpg\" alt=\"Modifications to the AOA and SHARE CERTIFICATES\" width=\"969\" height=\"226\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Modifications-to-the-AOA-and-SHARE-CERTIFICATES.jpg 673w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Modifications-to-the-AOA-and-SHARE-CERTIFICATES-300x70.jpg 300w\" sizes=\"(max-width: 969px) 100vw, 969px\" \/><\/a><figcaption id=\"caption-attachment-3793\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Modifications to the AOA and SHARE CERTIFICATES<\/span><\/figcaption><\/figure>\n<p><strong>REPORTS ON INVESTOR RELATIONSHIPS<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Now that you&#8217;ve completed the round of funding, which can take anywhere from 3 to 9 months to complete, it&#8217;s important to look after your investors by adhering to the terms of the definitive agreement and following best practices. Regular updates on the company&#8217;s or project&#8217;s progress can encourage investors to invest more. Some of the reports may be difficult to understand.<\/p>\n<p style=\"padding-left: 40px;\"><strong>A. Monthly Quarterly performance report<\/strong><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<figure id=\"attachment_3794\" aria-describedby=\"caption-attachment-3794\" style=\"width: 914px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Monthly-Quarterly-performance-report.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3794\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Monthly-Quarterly-performance-report.jpg\" alt=\"Monthly Quarterly performance report\" width=\"914\" height=\"165\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Monthly-Quarterly-performance-report.jpg 687w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Monthly-Quarterly-performance-report-300x54.jpg 300w\" sizes=\"(max-width: 914px) 100vw, 914px\" \/><\/a><figcaption id=\"caption-attachment-3794\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Monthly Quarterly performance report<\/span><\/figcaption><\/figure>\n<p>B. <strong>Compliance Reports<\/strong><\/li>\n<\/ol>\n<figure id=\"attachment_3795\" aria-describedby=\"caption-attachment-3795\" style=\"width: 953px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Compliance-Reports.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3795\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Compliance-Reports.jpg\" alt=\"Compliance Reports\" width=\"953\" height=\"385\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Compliance-Reports.jpg 645w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Compliance-Reports-300x121.jpg 300w\" sizes=\"(max-width: 953px) 100vw, 953px\" \/><\/a><figcaption id=\"caption-attachment-3795\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Compliance Reports<\/span><\/figcaption><\/figure>\n<ol>\n<li style=\"list-style-type: none;\"><\/li>\n<li style=\"list-style-type: none;\"><strong>C. Project report<\/strong><\/li>\n<\/ol>\n<figure id=\"attachment_3796\" aria-describedby=\"caption-attachment-3796\" style=\"width: 998px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Project-report.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3796\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Project-report.jpg\" alt=\"Project report\" width=\"998\" height=\"860\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Project-report.jpg 448w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/07\/Project-report-300x258.jpg 300w\" sizes=\"(max-width: 998px) 100vw, 998px\" \/><\/a><figcaption id=\"caption-attachment-3796\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">Project report<\/span><\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FUNDING MANTRA: DOCUMENTATION FOR A STARTUP BEFORE AND AFTER INVESTMENT Brilliant company ideas provide value to society in this era of startups. The early bird gets the worm, as the saying goes. Comparing millennial classics in the food tech field, such as Swiggy and Zomato food delivery, had a significant impact. The ability to conceive &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[695],"tags":[855,966],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3772"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=3772"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3772\/revisions"}],"predecessor-version":[{"id":5306,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/3772\/revisions\/5306"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=3772"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=3772"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=3772"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}