Stellaris Venture Partners, a venture-capital firm based in India, has named Preseedha Premnath to serve as its general counsel. Premnath brings more than ten years of legal experience across private-practice and in-house positions. Her professional path began at Amarchand & Mangaldas & Suresh A Shroff & Co before she transitioned to Cyril Amarchand Mangaldas following the firm’s split.
Premnath transitioned into an in-house role at Stellaris in 2021 and became the general counsel in 2024. She has experience in private equity and venture capital, which she utilized to make the transition. In her new role, Premnath emphasizes the importance of being proactive and preventing issues, rather than just reacting to existing problems.
Transition to In-House Role
Premnath notes that the transition from a law firm to an in-house role requires a change in orientation. As the general counsel, the responsibility is to be proactive and prevent any issues, and to approach a fact pattern in a much more holistic manner. She also emphasizes the importance of considering the business aspect of her role and structuring decision-making to further the investment objectives of the fund.
Premnath’s experience at Amarchand Mangaldas and Cyril Amarchand Mangaldas has been invaluable in her current role. She was trained to think commercially and apply the law in a pragmatic manner. She worked with a team that urged young lawyers to consider the commercial implications of their advice, rather than just providing strict interpretations.
Balancing Agility and Risk Management
As the general counsel of our fund, the question also must be viewed in two stages. The first is at the stage of our investment, and the second as part of ongoing governance and compliance of our portfolio companies. Yes, as a VC, you have to balance both – agility and risk management. She notes that it is essential to put systems and processes in place that introduce objectivity into every new deal. These systems and processes need to be refined and sharpened over time to ensure that they are effective.
Premnath works closely with the investment team, operations team, and advisors to ensure that the firm’s investments are properly managed. She also prioritizes legal compliance, which can be challenging for startups with limited resources. Following the closure of the transaction, we work closely with the founders to help set up their internal policy and compliance manuals as well as to hire internal legal persons where the founders request.
The Indian startup ecosystem has seen significant changes in recent years, with regulators becoming more savvy and keeping pace with global developments. As lawyers, we need to constantly keep the learning cycle active. As a general counsel to a VC fund, you need to stay ahead of the curve- for instance, I cannot possibly evaluate a crypto exchange startup without understanding the recent regulatory developments in the space.
Premnath believes that lawyers considering a career in the venture capital space should focus on developing empathy, building a network, and gaining commercial aptitude. She also notes that AI has significantly aided the efficiency of legal processes, particularly in documentation and transaction management. However, she emphasizes that AI will not replace the role of critical thinking and decision-making in the legal function.
One of the main areas where AI has aided efficiency is in documentation and transaction management. Premnath’s team is constantly evaluating software that enables portfolio information management, closure management, and AI software that collates regulations and notifications. This software simplifies the search function and provides access to portfolio companies, making it easier for them to access regulatory information.
Emerging Trends and Opportunities
One of the emerging trends in the Indian startup ecosystem is the growth of fintechs, which has led to a significant evolution in the regulatory environment. Premnath notes that her team has had to help founders understand the regulations and how changes tie into their day-to-day operations. This requires a high degree of commercial aptitude and the ability to think with empathy from the founder’s perspective.