We want to back founders having a long-term mindset, with patient capital at Malpani Ventures. One of the points of contention for founders with VC funding is the ‘Exit Tenure’ Clause. As VC AIFs have a limited period to return capital to their LPs, such ‘5 to 7’ year clauses become inevitable in SHAs and term sheets. This tends to rule out some categories with long gestation periods for VC funding, whilst in some cases putting undue pressure on the startup to grow. As a single-family office, we are not bound by this constraint!

To walk the talk, we have decided to remove the exit tenure from our term sheets/ SHAs going forward. Businesses, especially early ones, chart their own path and need supportive investors who are in it as long as the founders!

Does this mean that we do not want an exit? No, we are financial investors who invest to make money; however, we want to do so based on the timeline a business warrants and not ours! 

Write to us if you are building a large, long-term business and want a partner with a similar mindset - write to us!