Term Sheets, Valuations, and

Instruments Of Fund Raising

Vatsal Kanakiya • Mehta Ventures
How Does Dilution Work
Things to Remember

A Pvt. Ltd. Company is needed

Valuation = (Number of Shares) x (Price per Share)

Existing Shares aren’t sold - New Shares are created

Investing is Marriage,

Term Sheets are the Engagement

Focus on the following

1. Security being Issued

2. Offering and Valuation
3. Board Seat
4. Drag Along / Tag Along / Put Option
The Valuation 1. Gold Standard: “My
Question Peer got x
Valuation”
2. DCF: “Current
Revenues and
projected revenues
indicate a value of x”
Instruments of Fund Raising
 Priced Convertible iSAFE Note
Round Note
Shares are assigned May be converted into debt May be converted into only
immediately or equity at a later stage equity at a later stage
Thank You

vatsal@mehtaventures.co