Until entrepreneurs disrupt and change the status quo, they don’t create value. And when disruption happens, the law will catch up, said Varun Bajaj, Founding Managing Partner, RSD Bajaj Global Law Firm, which works specifically with startups and businesses operating in the new economy.
“Law is always catching up (with) disruption, especially in this age when the entire world order is changing,” he said, adding that this is his legal as well as commercial advice to entrepreneurs starting up in newer areas of businesses.
Entrepreneurs should go behind the right market opportunities and get legal help to do so, said Varun, in a fireside chat with YourStory’s Founder and CEO, Shradha Sharma, at TechSparks 2023 in Delhi.
Citing an example, Varun said the Digital Personal Data Protection Bill was brought in last year, and when the lawmakers saw how big generative AI was becoming, the bill became an act.
Shivaarti Bajaj, Founding Managing Partner of RSD Bajaj Global Law Firm, who was also part of the discussion, said venture capitalists (VCs) are ready to support startups in a big way because they are on the highway.
“And, on the highway, barriers get broken. Once they get broken, and you have the right advisors, a lot of challans are excused at the right time. It’s a two-way game I’ve seen where VCs and startups work hand in glove,” said Shivaarti.
Terms are increasing in term sheets while startups raise funding and, as the power play is typically on the investors’ side, it is better to get the legalities vetted by experts than deal with any consequences that may arise at a later stage, said Varun.
“If you take paracetamol on day 1, you don’t need surgery at a later date,” he added.
Both the lawyers emphasised the importance of startups going for intellectual property as well as data protection, among other things.
Edited by Swetha Kannan
