Preseedha Premnath, general counsel at Stellaris Venture Partners, has spent over a decade guiding the transition from law firm partner to in-house counsel at a venture capital firm. The distinction, she states, lies not in the work itself but in how it is approached.
In a law firm setting, Premnath notes, lawyers typically respond to client problems as they arise. As general counsel at a VC fund, however, the focus shifts to being proactive and preventing issues. This requires more than legal knowledge-it demands an understanding of the fund’s investment goals and the obligations owed to limited partners.
Her training at Amarchand Mangaldas, where she learned to apply the law in practical ways rather than rigidly, has proven essential. This approach is vital in VC, where legal advice must align with business objectives.
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Managing Speed and Risk in Early-Stage Investments
Stellaris specializes in early-stage investments, where speed and risk management often conflict. Premnath divides this into two phases: the investment stage and ongoing portfolio oversight. During the investment phase, systems need to introduce objectivity to deals without delaying them.
The challenge intensifies during ongoing support. Early-stage startups frequently lack resources-both personnel and capital-so legal compliance often takes a backseat, particularly when founders engage counsel only for specific transactions. Stellaris helps portfolio companies establish internal policy and compliance manuals as well as to hire internal legal persons where the founders request.
One of the most fulfilling aspects of her role, she says, is easing the operational burden on founders.
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Key Skills and AI’s Role in Modern VC Legal Work
Artificial intelligence has become a key tool in improving legal efficiency, particularly in documentation and transaction management. Current applications include software for portfolio information tracking, closure management, and regulatory monitoring, which streamlines access to compliance updates for portfolio companies. AI, to my mind, will be an enabler – but in some ways, it is bound to make the role of critical thinking and decision making – so key to the legal function (and to any professional field, in fact), even more significant than it has been at any time in the past. The technology’s evolution will likely expand its utility, but its primary value lies in enabling lawyers to focus on higher-level analysis and strategic advice.
Adapting to India’s Changing Business Environment
The Indian startup sector has undergone significant changes in recent years, with investors, founders, and regulators becoming more sophisticated. For Premnath, this evolution creates both opportunities and challenges. The rapid pace of technological and regulatory shifts means legal teams must stay ahead—not just in legal knowledge, but in understanding the underlying technology and business models.
For instance, evaluating a crypto startup now requires tracking regulatory updates, grasping technical operations, and advising on operational risks. Similar demands apply to fintechs, where evolving rules, such as those governing customer data or foreign investment, demand constant attention.
