indian startup ecosystem Archives - MyStartupEquity Blog

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How much equity should be diluted for creating the ESOP pool?

“Though ESOPs are popular and extremely fruitful, they are far from being adopted on a large scale. This is because most founders do not understand ESOPs well. Most Indian startups…

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What is CCPS?

When investors enter the cap table of a startup, they are given preference shares – shares that have rights to liquidate during the lifetime of the company. In India, these…

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MyStartupEquity’s Cap Table Dictionary

MyStartupEquity‘s cap table dictionary comprehensively enlists all the important terms pertaining to cap table management. Must read for founders, employees, and investors! Note: We have called this a dictionary but…

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What are Compulsory Convertible Debentures or CCD?

CCD or Compulsory Convertible Debenture is a hybrid security that is neither purely debt nor equity. These debt instruments that have to mandatorily get converted. Due to this mandatory conversion…

ESOP for Founders

Difference between ESOPs & Stock Appreciation Rights (SARs)

Stock Appreciation Rights or SARs are picking up momentum in India and you would have recently read about serial entrepreneur, Jiten Gupta’s startup Jupiter.money adopting Stock Appreciation Rights for their…

ESOP for Founders

How to give Advisor Equity in India?

Startups in India have many questions on how to give advisor equity, i.e. shares to advisors, mentors, consultants. First, up you must know that under the provisions of the Companies…

ESOP for Founders

#LetsTalkESOP | Stock Appreciation Rights (SARs)

In a webinar with MyStartupEquity, Siddarth Pai (Founding Partner & CFO of 3one4 Capital) spoke about the importance of equity grants in startups. Siddarth believes that Indian startups should consider…

What is Exercise Tax? How to calculate it

Exercise tax incidence arises only when an employee is granted ESOPs and he/she exercises these equity grants. Note that there is no tax implication during the vesting period. Upon exercise,…

ESOP for Founders

Who is eligible to receive ESOPs in India?

ESOPs are long term incentive schemes that are made available to certain employees as a gesture of faith and with a promise for outsized returns. While the employer can minimize…

Complete Legal Overview on Sweat Equity Shares

With the government notification that came out on Tuesday night, the issue of ESOPs and “Sweat Equity” is back in focus. Financial news portal – Finshots has a good summary…