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Fundraising · Venture Capital

Venture Capital Funding Readiness – Term Sheets, Diligence and Closing Compliance

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.

Overview

What a VC Round Involves

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.

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What This Service Covers

What We Help With

1

Pre-diligence review and data room

2

Term sheet walkthrough for founders

3

Coordination on SHA, SSA and AoA amendments

4

Valuation, approvals and allotment filings

5

FC-GPR and post-closing compliance

Key Facts

VC funds

Usually SEBI-registered Category I or II AIFs, or foreign investors under FDI.

Instrument

CCPS is common in VC rounds.

Investor rights

Board seats, reserved matters, anti-dilution, liquidation preference.

Articles

Investor rights must be reflected in the AoA.

FEMA

FC-GPR within 30 days for foreign investment.

Diligence

Legal, financial and tax review before closing.

Common Issues

Why VC Rounds Get Delayed

Delays are often caused by the company’s own records.

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Related Services

Related services

VC readiness connects with these services.

Startup Due Diligence

Pre-investor review.

Shareholders Agreement

Investor rights agreements.

FDI Compliance

Foreign investment rules.

ESOP

Employee stock option pool.

Documents Required

Documents we need from you

Company Records

Round Documents

Our Process

How We Work

1

Review

Pre-diligence review.

2

Data room

Organise documents.

3

Terms

Walk through the term sheet.

4

Documents

Coordinate SHA, SSA and AoA.

5

Close

Approvals, allotment and filings.

6

Report

FEMA and post-closing compliance.

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After Closing

After Closing

Post-closing obligations begin immediately.

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Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    What is a term sheet?

    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.

    About Expertvuw

    Who Handles Your Round

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    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.

    Expertvuw Management Pvt Ltd