Hotline: 1800 102 2007
X
Search Business Opportunities
people 2013-05-25

"Getting Promoters to Give Veto Right to the Investor is a Challenge"

In a candid chat with Franchise India, Ms. Seema Jhingan, Senior partner, Lex Counsel Law Offices, talks about PE/VC funding issues and investors.

"Getting Promoters to Give Veto Right to the Investor is a Challenge"

How should one deal with PE/ VC funding issues?

The most important issue when you are looking at PE/ VC funding is that structure your transaction very carefully. You should evaluate your funding options.  It means that you need to understand whether you are willing to part with the equity capital of the country; are you more comfortable with depositors; are you more comfortable with preference share or; whether you are looking for a combination of equity and debt. These are some of the financial issues before bringing an outsider into your home.

Throw some light on the investment agreement.

The most important part that you have to draw here is balance between getting growth capital, protection of the capital of the investor and the flexibility you want to keep with yourself with respect to the operations and management of the company. It should not happen that you take your capital and give away equity.

What is the biggest challenge between the investor and the promoter?

The biggest challenge is the synergies between the investor and the promoter. Promoters are generally busy doing their own work and taking their own decisions. The challenge is when suddenly they have to give a veto right to the investor.

Comment
Related opportunities
  • Salamis Mental Arithmetic (India) Private Limited bring the education business..
    Locations looking for expansion Delhi
    Establishment year 2005
    Franchising Launch Date 2005
    Investment size Rs. 50 K - 2lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Delhi
  • About: Blue Mount is a leading water purifier brand that transformed..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • About Us GingerBread House IND is efficiently managed & headed by..
    Locations looking for expansion West Bengal
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 1300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolkata West Bengal
  • EmployRoll, an industry leading SaaS product introduced by Thimbmatic Solutions..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts