How to start a fundraiser for startups

950 votes

You need a document called term sheet , it's a document that outlines the terms by which an investor will make a financial investment in your company. Term sheets tend to consist of three sections: funding, corporate governance and liquidation. You can DIY but if you understand the terms sheet and other concepts ( you know very well how funding and repayment will work in case of success or failure) , i will suggest you to go for lawyer because chances of mistakes will be less and your lawyer can draft term sheet in your favour in case of liability occurs. It also gives you overall protection and founder and investor duties, responsibility and other factor like who have parental control of company etc defined under this term sheet. Its not advisable to do it yourself (DIY).

Advocate Nischal Arvind Singh LawRato

777 votes

Hi. Under the Companies Act, 2013, there are certain compliances required when taking money from third parties as investment towards equity in a Company. You would at the minimum require the services of a Company Secretary (for the ROC Compliances) as well as a corporate/startup lawyer (to record the terms of the investment in a definitive agreement).

Advocate Aditya Shamlal LawRato

735 votes

Depends on how good the template is. Also what kind of rights and duties of the friends and family are you looking at this stage. It appears that right now you are choosing between whether you should incur expenses on the legalities. Meet a lawyer I would say. Or Let me know if you want to have a quick meeting and I can guide you.

Advocate Mansi Airi Gambhir LawRato