Start-Up Funding – Investor Rights
Abhishek Dubey
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Episode 1 :
Anti-Dilution & Liquidation Preference
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Episode 2 :
Major Investors & Exit Rights
27 Jan 2026
Anti-Dilution & Liquidation Preference
In Episode 1, our Partner, Abhishek Dubey, discusses two key provisions that shape the balance of rights between investors and founders – anti-dilution and liquidation preference. He explains how the use of a weighted average formula can provide founders with protection against significant dilution of their shareholding. He also discusses liquidation preference structures that appropriately balance the rights of investors and founders.
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Major Investors & Exit Rights
Our Partner, Abhishek, elaborates on two key and frequently negotiated clauses in start-up financing – Major Investor rights and Exit rights. He discusses the creation of a special class of investors based on a negotiated ownership threshold, namely Major Investors, and elaborates on the special rights such investors may enjoy, including board representation, enhanced information rights, and veto rights on key decisions. He further examines both primary exit rights and secondary exit mechanisms, and how these can be best structured.
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