Stellaris Venture Partners, an Indian VC firm, has hired Preseedha Premnath as its new general counsel. Premnath is a seasoned legal professional with over a decade of experience in both private practice and in-house roles. She began her career at Amarchand & Mangaldas & Suresh A Shroff & Co and later moved to Cyril Amarchand Mangaldas after the split.
Premnath transitioned into an in-house role at Stellaris in 2021 and became the general counsel in 2024. In her new role, she is responsible for balancing robust legal protection with startup agility, a challenge she acknowledges is critical in the VC space. According to Premnath, as a general counsel, the responsibility is to be proactive and prevent any issues, rather than just reacting to existing problems.
From Law Firm to In-House Role
Premnath notes that the transition from a law firm to an in-house role requires a change in orientation. In a law firm, lawyers may be reactive at times, analyzing and solving existing issues. This requires developing systems and processes that can flag potential issues before they become major problems.
Premnath also emphasizes the importance of considering the business aspect of her role. As an in-house counsel, she is a stakeholder in the investee companies and a fiduciary of the limited partners. This generally means that she must structure and facilitate decision-making while furthering the investment objectives and ethos of the fund.
During her time at these law firms, Premnath was trained to think commercially and not just focus on strict legal interpretations. She was exposed to complicated transactions and worked with experienced lawyers who encouraged her to apply the law in a practical and effective manner.
Balancing Agility and Risk Management
Premnath acknowledges that balancing agility and risk management is a key challenge in the VC space. As a general counsel, she must ensure that the fund’s investments are properly protected while also allowing for the agility and speed that startups require. To achieve this balance, Premnath emphasizes the importance of putting systems and processes in place that introduce objectivity into every new deal.
She also notes that the support of the investment team, operations team, and advisors is essential in achieving this balance. While time is of the essence in startup deals, Premnath believes that it is equally important to prioritize robust legal protection and risk management. By working closely with the founders and providing ongoing support, Premnath aims to help them build a strong foundation for their businesses.
One of the ways Premnath achieves this is by working with the founders to set up internal policy and compliance manuals, as well as hiring internal legal personnel where necessary. She also builds an internal reporting system with the portfolio companies to track ongoing compliance issues and provide support where needed. By taking a proactive and holistic approach, Premnath believes that she can help reduce the burden on founders and allow them to focus on building their businesses.
Premnath’s experience working with early-stage founders has also given her a unique perspective on the importance of empathy and understanding in the VC space. She believes that building strong relationships with founders and providing personalized support is critical in helping them work through the challenges of building a startup. As the Indian startup ecosystem continues to evolve, Premnath is excited to see how her role as general counsel will continue to adapt and grow.
According to Premnath, the Indian startup ecosystem has become more sophisticated, with investors, founders, and advisors all becoming more savvy. However, this increased sophistication also brings new challenges, particularly in terms of regulatory compliance. Premnath notes that regulatory requirements are constantly changing, and it is important for in-house legal teams to stay informed.
For example, Premnath points to the significant developments in technology and the constantly evolving regulatory framework as an opportunity and challenge for the ecosystem. As a general counsel, she must stay informed about the latest developments in areas such as fintech and crypto, and be able to advise founders on handling these complex regulatory environments. By doing so, Premnath believes that she can help founders build strong, compliant businesses that are well-positioned for success.
This approach allows Premnath to provide ongoing support to founders, helping them work through the regulatory and compliance framework. Premnath finds this aspect of her job particularly rewarding, as she is able to function as a partner to the founders and help them overcome initial challenges.
