Cap Table Best Practices
Founders must ensure clean IP assignment, clear equity vesting milestones, and anti-dilution protections that align with industry norms.
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Standard equity allocation rules, cap table benchmarks, and avoiding predatory studio terms.
Direct Answer:
In a healthy Indian venture studio agreement, founding executives retain 60% to 80% equity post-spinout, the venture studio holds 20% to 40%, and an ESOP pool reserves 10%. Studios taking more than 50% equity create "broken cap tables" that deter institutional VC investors in follow-on rounds.
Founders must ensure clean IP assignment, clear equity vesting milestones, and anti-dilution protections that align with industry norms.