Everything About Startup Funding In India with CA Shubham Maloo

Assisting Indian Startup Founders with Fundraising

Understanding Instruments, Features, Benefits, and Implications

This document aims to help Indian startup founders comprehend the subtleties of fundraising in India.

It includes a breakdown of various fundraising instruments, their unique features, benefits, and tax and regulatory implications.

Get detailed understanding of :

Equity Financing

• Features: Sale of company ownership for capital.
• Benefits: No repayment or interest; investors often bring added value.
• Implications: Tax implications for shares issued above fair market value; compliance under Companies Act, 2013

Convertible Notes

• Features: Loans that can convert into equity.
• Benefits: Delays valuation event, simplifying early-stage fundraising.
• Implications: Governed by both debt and equity financing regulations.

Understanding these instruments in-depth can aid founders in making informed decisions during their fundraising journey.