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Last updated: 2 October 2026
Venture capital rounds bring larger cheques, detailed term sheets and thorough diligence. Expertvuw’s team helps founders prepare records and data rooms, understand term sheet terms, and complete the Companies Act and FEMA steps to close the round.
Venture capital funds in India are usually registered with SEBI as Category I or Category II Alternative Investment Funds, and foreign VC funds invest as FDI or through registered structures. A VC round typically moves from a term sheet — covering valuation, instrument (commonly CCPS), investor rights such as board seats, reserved matters, anti-dilution, liquidation preference, ESOP pool and founder vesting — to legal, financial and tax due diligence, and then to definitive documents: a share subscription agreement and a shareholders’ agreement.
Closing requires board and shareholder approvals, amendment of the Articles of Association to reflect investor rights, a valuation report, private placement or preferential allotment procedures, allotment filings with the MCA, and for foreign investors, FC-GPR reporting on RBI’s FIRMS portal within 30 days.
Preparation shortens timelines: clean statutory records, a reconciled cap table, founder IP assigned to the company, and an organised data room make diligence faster and reduce last-minute changes.
Basis: Companies Act, 2013 (sections 42, 55, 62); SEBI (AIF) Regulations, 2012; FEM (Non-debt Instruments) Rules, 2019; RBI Master Direction – Foreign Investment. Last updated: 27 September 2026.
Usually SEBI-registered Category I or II AIFs, or foreign investors under FDI.
CCPS is common in VC rounds.
Board seats, reserved matters, anti-dilution, liquidation preference.
Investor rights must be reflected in the AoA.
FC-GPR within 30 days for foreign investment.
Legal, financial and tax review before closing.
Delays are often caused by the company’s own records.
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VC readiness connects with these services.
Pre-investor review.
Investor rights agreements.
Foreign investment rules.
Employee stock option pool.
Pre-diligence review.
Organise documents.
Walk through the term sheet.
Coordinate SHA, SSA and AoA.
Approvals, allotment and filings.
FEMA and post-closing compliance.
Post-closing obligations begin immediately.
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A non-binding summary of key deal terms, such as valuation, instrument and investor rights, before definitive documents.
Compulsorily convertible preference shares give investors preferences while counting as equity for FEMA purposes.
A right for investors to receive their money back, or a multiple, before other shareholders on an exit.
Allotment filings with the MCA and, for foreign investors, FC-GPR within 30 days.
Expertvuw supports readiness and compliance; negotiation and legal advice come from you and your advisers.
ACS – Director, Expertvuw Management Pvt Ltd
Fundraising support is provided by Expertvuw’s team. Expertvuw does not guarantee funding, does not solicit investment from the public and is not a SEBI-registered intermediary; valuations and certifications come from independent eligible professionals.