What is Private Equity, Venture Capital & Angel Investments?

When firms grow or expand businesses, they opt to raise funds from private investors instead of opting for borrowings. The investments are of different types:
- Private Equity (PE): Large investment by private firms or institutional investors in established firms for expansion, acquisitions, or restructuring. PE firms normally acquire a majority of the company and possess a dominant strategic position.
- Venture Capital (VC): Investment in early-stage or new businesses that offer high growth opportunities. VC funds invest capital in exchange for equity, and also provide mentoring and networking assistance.
- Angel Investors: Solo venture capitalists who supply early-stage funds to start-ups, frequently prior to involvement by VC. Angel investors invest in smaller amounts but at greater risk for equity or convertible debt.
These forms of fundraising are necessary for growth companies and commercializing innovations.
Why Legal Dalal for Raising Equity or VC Funding?
Legal Dalal streamlines intricate funding processes by guaranteeing legality, transparency, and investor confidence:
- Investor-Ready Documents: We prepare term sheets, shareholder agreements, investment contracts, and pitch decks.
- Regulatory Compliance: Complying strictly with FEMA, SEBI, Companies Act, and Income Tax regulations.
- Funding Strategy Planning: We help you select the right funding model and type of investor based on your stage and business goals.
- Investor Communication: We assist in deal term structuring, investor negotiation, and presenting your business in an appealing manner.
- India-Wide Support: No matter where you are in Mumbai, Hyderabad, Pune, Delhi, or a Tier-2 city — we’ve got your back.
What Services Do We Provide?
- Private Equity Deal Structuring: We structure secure and compliant investment agreements for mid-sized to large-sized enterprises.
- Venture Capital Raising: From startup pitch preparation to term sheet negotiation — we handle it all.
- Angel Investment Rounds: We assist in bringing on angel investors and ensuring that all contracts are signed appropriately.
- Cap Table Management: We build and manage capital tables to reflect equity distribution accurately after an investment.
- Due Diligence Assistance: We help you prepare and respond to investor legal, financial, and regulatory questions.
- Shareholder Agreements: We draft customized agreements with investor rights, obligations, and exit terms.
- FEMA & RBI filings: Foreign investment-wise, we have FEMA compliance and RBI reporting (e.g., FC-GPR, FLA returns).
- Valuation & Legal Opinions: We coordinate professional valuation reports and legal opinions as may be required by investors or the government.
Why Private Equity, VC, or Angel Investment?
- No Loan Repayment: You don’t pay back money — investors get returns in equity form.
- Mentorship & Strategic Advice: Investors will probably bring experience, connections, and guidance to support your business to expand.
- Higher Growth: With sufficient finance, you can move quickly on hiring, marketing, R&D, and expansion.
- Higher Market Value: Such a company with legitimate investors is more credible and, in most instances, better valued.
- Flexible Exit Opportunities: Investment contracts can have IPOs, buy-backs, or secondary sales.
Step-by-Step How We Help You
- First Consultation: Find out your business model, intentions, and preferred type of funding.
- Investor Pitch Preparation: Have the pitch deck, financials, and valuation ready.
- Identify Investor Type: Puts you in touch with relevant Angel, VC, or PE investors.
- Preparation of Agreements: Term sheets, SHA (Shareholder Agreement) and Investment Agreements.
- Regulatory Compliance: MCA filing, RBI filing (in case of foreign investment), and SEBI guideline compliance.
- Post-Funding Support: Help you manage equity changes, share issuance, and future investor relations.
Documents Required
- Business PAN, COI, and MoA/AoA
- Business Pitch Deck and Financial Model
- Shareholders’ and Board Resolutions
- Valuation Report by Registered Valuer
- Term Sheet / Investment Agreement
- Know Your Investor (KYI) Documents
- RBI reports (where foreign investors are concerned)
- ROC Filings like PAS-3, SH-7, MGT-14
Why Legal Dalal is Best Choice
Investor Compliance Services with Legal Dalal is simple. Here’s the step-via-step process:

Investor-Ready Team: 12+ law, compliance, and startup fundraising experts.

SEBI & FEMA Compliant: We make sure you remain compliant with all investor legislations.

360° Legal Funding: We manage the entire funding process, from beginning to end.

Smart Negotiation: We assist you in remaining in control and framing win-win agreements.
FAQs
Yes. While PE can be apt for established firms, VC and Angel finance can be more appropriate for start-ups.
Equity investment does involve selling an interest, but we help you negotiate good terms and maintain control.
Yes, according to FEMA rules and RBI directives. We facilitate all the filings.
Yes, particularly when issuing equity to investors. We draw to your attention registered valuers.
A preliminary report providing terms of investment before the execution of the final agreement.