Early-stage investments: Importance of compliance and corporate governance

Introduction

Over the last decade, the Indian economy has seen a remarkable increase in early-stage investments from angel investors, venture capitalists, and even certain private equity funds.

What attracts an investor to a start-up, is mainly the revenue potential of the business idea and the team. However, it takes more than a simple investment agreement and a handshake to get to a stage where the investor actually writes the cheque.

Various issues could turn a straightforward fundraise into a complex and unending process and could also result in a dead deal. One such issue is compliance, which is often left for the legal counsels to resolve at an advanced stage of a deal.

Please click here to read the full article by Archana Panchal & Gail Pereira, published in Times of India.