Thread by @mehulshahca

Well,

CA Se Door Raho -

CA Ko Nikal Do -

But this is how me as a CA as well as other CA/CS around me have added value to #Startups and #Angel #Investment
#SharkTankIndia #startupindia #SharkTank ( 1/n )

@namitathapar @amangupta0303 @Ashneer_Grover @peyushbansal @vineetasng

Angel Investors commit to invest in Startups without having any knowledge that there is a deemed "Angel tax" on premium paid on equity u/s 56(2)(viib)

I have saved 200 Cr+ on tax on such hasty decisions taken by #Investors by applying for #Angeltax exemption #startupindia
(2/n)

The Deal by #Sharks is followed by Term Sheet and Share Holders Agreement

As a CA/CS our role is to educate the #Startup #Founder about the clauses like Buy Back, Drag along , Anti-Dilution and Liquidation preference

#SharkTankIndia #SharkTankIndiaOnSonyTV

CAs would advise #Startup Founder not to dilute their stake to more than 25% in First round bcoz in case you are required to dilute 30% in second round at time when you are actually scaling up, you lose control of the company at a very crucial stage

So don't listen to CAs

CAs might advise to opt for #SISFS under #startupindia wherein the Startups can apply to 3 Incubators for 20 lakhs equity free grant instead of taking it from Angels; wherein the Govt plans to disburse 945 Cr in 4 years

So Don't listen to #CAs

#SharkTankIndia (5/n)

The actual Startup Investment does not work like as shown in #SharkTankIndia

First, the investors express their soft commitments

It is then followed by DD Reports which is mostly prepared by CAs/CS and Registered Valuers Report who are also mostly CAs/CS

#startupindia (6/n)