Venture capital firms are tightening founder contracts, with nearly 76% of Indian startups now allowing the forfeiture of vested shares for misconduct. This "Nuclear Option" aims to deter financial irregularities and governance issues, a trend amplified by recent high-profile startup disputes. Founders are now negotiating for stricter definitions of "cause" and fair value for any clawed-back shares.

Venture capital firms are tightening founder contracts, with nearly 76% of Indian startups now allowing the forfeiture of vested shares for misconduct. This "Nuclear Option" aims…

Happy Friday! Investors are rewriting the rules of engagement with founders after a rash of governance blowups. This and more in todays ETtech Morning Dispatch.