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FOUNDER EQUITY PRESERVATION

Cap-Table & Equity Protection for Early-Stage Founders

Avoid giving away too much equity to early investors. We help you issue fair and compliant term sheets using standardized iSAFE CCPS notes, clean up existing ownership structures, and keep your company VC-ready.

Standardized iSAFE CCPS Prevent Bad Dilution Clean Vesting & ESOPs

Cap-Table Advisory Desk

Direct consultation with equity structuring specialists

Protect your hard work before signing term sheets. Our team audits your dilution curves, models future rounds, and structures compliant investment documents.

100% ConfidentialFEMA & Companies Act Compliant

Cap-Table Mistakes That Stop Funding

Most early funding rejections are caused by messy equity structures rather than poor product-market fit.

Series A Red Flag

Excessive Pre-Seed Dilution

Selling >15–20% Early

Giving away massive equity chunks to local angel networks or informal investors before reaching product-market fit leaves founders diluted and unbackable for top-tier VCs later.

Triggers institutional deadweight penalties in future rounds
Disincentivizes founders over multiple financing stages
Leads to down-rounds or painful recapitalizations
Governance Trap

Deadweight Non-Active Equity

Advisors/Departed Co-Founders

Unvested shares or high equity percentages held by inactive team members, former co-founders, or passive advisors that provide zero operational value to the business.

Creates instant veto and board governance deadlocks
Institutional investors require clawbacks or cleanups before term sheets
Blocks vital equity pools needed for new key executive hires
Financial Burden

Complex Debt & Interest Traps

Custom Convertible Debt

Using complex convertible debt instruments with high coupon interest rates or repayment clauses that burden early cash flow instead of pure equity alignment.

Adds unnecessary financial liabilities to balance sheets
Causes valuation disputes during subsequent funding events
Diverts focus from business growth to legal negotiations
Hiring Hurdle

Mismatched ESOP Pools

Unstructured Option Pools

Creating improperly structured Employee Stock Option Plans without clear vesting cliffs, exercisable timelines, or regulatory alignment under Indian company law.

Inability to attract and retain senior leadership talent
Messy tax consequences for early employees upon exercise
Cap-table fragmentation with micro-share allocations

How We Protect Your Equity

Four steps to establish a clean, institutional-grade equity structure that protects founders and satisfies investors.

01

Ownership & Allocation Audit

We review your existing shareholding pattern, active founder splits, advisor grants, and past agreements to spot structural red flags.

02

Dilution Simulation

We run forward-looking models showing how current notes and upcoming rounds dilute founder control through Seed, Series A, and Series B.

03

iSAFE CCPS Standardization

We draft clean, standardized iSAFE notes (Compulsorily Convertible Preference Shares) under Indian Companies Act and FEMA rules.

04

Institutional Ready Package

You receive a transparent, clean cap-table dashboard and deal room asset that institutional VCs and angel networks can evaluate without hesitation.

iSAFE Notes vs. Traditional Priced Equity

Why modern high-growth startups use standardized notes over complex multi-page shareholder agreements

DimensionStandardized iSAFE (CCPS)Traditional Priced Round
Immediate Valuation NeedNot required (uses valuation cap/discount)Requires fixed valuation & chartered valuation reports
Legal Cost & TimelineStandardized, signed in days with minimal costWeeks of negotiation, expensive legal retainers
Board Seats & ControlZero board seats granted until conversionTypically grants board representation & vetoes
Debt & Interest ClausesPure equity instrument, zero debt or couponConvertible debentures often accrue interest
EQUITY & CAP-TABLE FAQS

Common Questions on Equity Preservation

What is an iSAFE note, and why does it protect my equity?

An iSAFE (India Simple Agreement for Future Equity) is a founder-friendly instrument structured as Compulsorily Convertible Preference Shares (CCPS). It allows you to raise money without pricing your company prematurely or signing restrictive debt terms, converting into equity only when you raise a priced venture round.

How much equity should founders keep before Series A?

Ideally, active founding teams should retain at least 65% to 75%+ of their company prior to Series A. Letting deadweight or passive equity exceed 15% in pre-seed phases is one of the primary reasons institutional VCs pass on otherwise good companies.

Can you help clean up messy agreements from previous angel rounds?

Yes. We evaluate existing shareholder agreements, advisor allocations, and unvested grants, providing clear restructuring frameworks to tidy up your cap-table before institutional due diligence starts.

How do we get started without filling out a form on this page?

Simply click 'Contact Now' to reach our team directly, or run the free 3-minute audit to see your current cap-table health score.

Ready to Secure Your Cap-Table?

Ensure you retain control of your business while bringing on early capital. Speak with our team today through our contact desk.