Equity governance for software & SaaS companies
equity incentive-heavy cap tables, fast funding rounds and distributed teams - where a single equity-and-compliance system matters most.
Speed and equity complexity, at the same time.
Tech and SaaS companies incorporate fast, raise early and often, and lean on equity incentives to hire before they can pay market cash salaries. That combination means equity decisions compound quickly - a messy cap table at seed stage becomes a diligence blocker at Series B.
EGF treats these as one continuous record from day one, so the same team that structures your founder equity is the one reconciling your cap table before your next round.
of Indian SaaS startups offer equity incentives within their first two years
funding rounds are common within 18–24 months of incorporation
customer bases often mean a Delaware or Singapore flip is on the table
Startup India recognition unlocks equity incentive tax deferral and other benefits
B2B software sold on subscription, usually with the fastest equity incentive hiring pace and repeat funding rounds.
Software serving banks and NBFCs - often layered with RBI-adjacent compliance on top of standard tech rules.
Payroll, HRMS and recruitment platforms handling employee data across many client companies.
Marketing and advertising software, frequently built on revenue-share deals with media partners.
Developer tooling and infrastructure products, commonly open-source-adjacent with early contributor IP questions.
Model and data-platform businesses where training data rights and IP provenance need early documentation.
Security software and services, often subject to extra scrutiny during enterprise customer diligence.
Infrastructure businesses monetizing data or API access, with usage-based rather than seat-based contracts.
From incorporation to your next raise - covered either way.
Start, Grow or Scale - the framework covers this industry at every stage.
What actually has to be filed, and when.
SPICe+ filing with the RoC, name reservation, MOA/AOA, PAN and TAN allotment.
Startup India recognition - unlocks equity incentive tax deferral, self-certification, and easier compliance.
GST registration for SaaS billing, plus any sector-specific approval (e.g. RBI for fintech-adjacent products).
AOC-4, MGT-7, and FC-GPR/FLA returns whenever foreign investment is received.
Where tech companies actually get stuck.
Code and product built before incorporation, never formally assigned to the company - a diligence red flag every time.
Pools sized without a model, or granted informally without SEBI-compliant documentation.
Each SAFE, note or round adds complexity a spreadsheet stops being able to track accurately.
Global customers or investors push toward a flip structure - often decided too late to be clean.
Tech & SaaS founders ask us this.
Most early-stage Indian SaaS companies reserve 8–12% of fully diluted equity for an equity pool, sized around a 3–4 year hiring plan rather than a fixed percentage. We model this against your funding roadmap so the pool isn't re-cut at every round.
Not always. Many US and global investors invest directly into Indian entities today. A flip makes sense mainly when your revenue, team or IP strategy is genuinely US-centric - we assess this case by case rather than defaulting to a flip.
With a standard 4-year vesting and 1-year cliff in the founders' agreement, unvested shares are typically forfeited or bought back at a pre-agreed price - this is decided upfront in FoundEquity, not negotiated after a founder exits.
Typically 2–4 weeks once incorporation documents and a brief business write-up are ready. We file it alongside incorporation so it doesn't become a separate, later task.
Yes - this is the most common finding. We reconcile the spreadsheet against share certificates, board resolutions and RoC filings, and flag every mismatch before it surfaces in investor due diligence.
Building a tech or SaaS company? Let's get your equity record right.
One conversation is enough to scope the engagement.
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