Economic TimesLean R·
VC contract terms get tougher on founder shares after governance lapses
Venture capital firms are tightening founder contracts, with nearly 76% of Indian startups now allowing the forfeiture of vested shares for misconduct. This "Nuclear Option" aims to deter financial irregularities and governance issues, a trend amplified by recent high-profile startup disputes. Founders are now negotiating for stricter definitions of "cause" and fair value for any clawed-back shares.
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