Handled by Lekha
Build your startup on a structure investors trust.
From DPIIT recognition and ESOP design to financial modelling, startup valuation, and investor-ready compliance — Lekha handles the foundational financial and regulatory work so you can build the product.
Get started →About this service
What is startup advisory?
Startup advisory is the institutional financial and regulatory guidance that most founders only access after making costly early mistakes. Lekha brings it to pre-seed and seed-stage companies before those mistakes happen: DPIIT recognition for Angel Tax protection, a well-designed ESOP, a defensible financial model and startup valuation, and investor-ready compliance with all statutory documentation in order from day one.
Who it's for
Is this right for you?
- First-time founders needing DPIIT recognition before their first priced equity round
- Co-founders setting up ESOPs and needing a defensible exercise price valuation
- Pre-seed startups building their first financial model and investor data room
- Companies preparing for a seed round who need advisory and statutory valuation reports
- Startups that need compliance, due diligence readiness, and statutory valuation documentation before investor diligence
When you need this
- You're raising a round from Indian investors and need Angel Tax protection via DPIIT recognition
- You're granting ESOPs and need both the plan documentation and the Rule 11UA valuation
- An investor has asked for your financial model, cap table, and a statutory valuation certificate
- You want a defensible startup valuation before entering investor conversations
- You need your compliance and due diligence documentation ready before investors' legal counsel checks
What you get
Key benefits
Angel Tax protection from day one
DPIIT-recognised startups are exempt from Section 56(2)(viib) for rounds up to ₹25 crore. We prepare and file the complete recognition application — typically approved within 5 business days.
Financial model and startup valuation that survives investor scrutiny
A bottoms-up 3-year financial model plus an advisory startup valuation — giving you a defensible number before investors propose their own. For statutory compliance (Rule 11UA), we coordinate the right merchant banker.
ESOP that works at the next round
ESOP pool sizing, vesting schedule, exercise price structure, plan documentation, and coordination of the merchant banker valuation — designed to survive Series A investor scrutiny.
Compliance and due diligence ready before investors check
Statutory registers, ROC filings, compliance calendar, due diligence document organisation, and statutory valuation reports — all in order before investors' counsel asks for them.
Common questions
Frequently asked
What is the difference between an advisory valuation and a statutory valuation?
An advisory valuation (what Lekha delivers directly) is a professional opinion of your startup's value using DCF and comparable transaction methods. A statutory valuation must be signed by a SEBI-registered merchant banker (for Rule 11UA/Section 56(2)(viib)) or IBBI Registered Valuer (for Companies Act). Lekha delivers advisory valuation and coordinates the statutory valuation through the right professional.
What is DPIIT Startup India recognition and what does it give me?
DPIIT recognition is a government certification that your company qualifies as a startup under the Startup India initiative. Key benefits: Angel Tax exemption for investments up to ₹25 crore, a 3-year income tax holiday under Section 80-IAC (subject to IMB approval), and self-certification compliance under several labour laws. To qualify, your startup must be less than 10 years old with turnover under ₹100 crore.
How should co-founders split equity, and what is a vesting cliff?
The structure most institutional investors expect: 4-year total vesting with a 1-year cliff. The cliff means no equity vests until a founder has been with the company for 12 months — after that, 25% vests immediately, and the remaining 75% vests monthly over 36 months. Lekha documents this in the ESOP plan and founders agreement with proper board and shareholder resolutions.
What is an ESOP pool and when should I set one up?
An ESOP pool is a reserved block of your company's shares for granting to employees and advisors. Most institutional investors at seed and Series A require a pool of 10-15% to be established pre-money. The exercise price for ESOP grants must reflect a statutory valuation by a SEBI-registered merchant banker (Rule 11UA) — Lekha coordinates this as part of the ESOP design engagement.
What does investor-ready compliance and due diligence mean in practice?
It means your company passes investor and legal due diligence without delays: all ROC returns filed, statutory registers maintained, IP properly assigned, compliance calendar current, due diligence documents organised in a shareable folder, and statutory valuation reports obtained. Lekha sets up all of this as part of the engagement.
When do I need a statutory valuation vs an advisory valuation?
You need a statutory valuation (SEBI-registered merchant banker) before: (1) any priced round with Indian resident investors for Rule 11UA/Section 56(2)(viib); (2) every ESOP grant for Rule 11UA(2). You need an advisory valuation for investor negotiation anchoring and internal planning. Lekha delivers the advisory valuation and coordinates the statutory merchant banker valuation.
Complete DPIIT recognition application for the Startup India programme — 3-year income tax holiday eligibility and self-certification compliance benefits.
ESOP pool design, vesting schedule, exercise price structure, and plan documentation. Statutory exercise-price valuation via registered merchant banker.
3-year financial model, advisory startup valuation (DCF + comparables), unit economics, and the complete financial data room package investors examine before writing a cheque.
End-to-end investor readiness: compliance calendar, statutory register maintenance, due diligence document preparation, and coordination of statutory valuation reports required by SEBI and the Income Tax Act.