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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Indian Startups
22 posts
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…
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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…
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#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…
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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,…
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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…
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Start-up companies given more leeway to issue sweat equity shares
With valuations of several start-ups taking a hit during the lockdown, the Centre has sought to soften the blow by allowing them to issue sweat equity within 10 years of…
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ESOP Accounting & Bookkeeping
There is a pandora of misconception around ESOP accounting treatment, the requirement of valuation reports and disclosure etc. across the startup ecosystem. Companies provide ESOPs to employees to buy the…
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Offering ESOPs – Planning for every stage of growth
Employee ownership and shared capitalism as concepts are relatively new to India but have a strong impact on the startup ecosystem. Thanks to the benefits that ESOPs (Employee Stock Ownership…
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