Preseedha Premnath’s career took a deliberate turn a decade ago when she left a prestigious law firm to join Stellaris Venture Partners as general counsel. The change marked a shift from resolving legal issues reactively to embedding prevention strategies into the early-stage startups the firm backs. Her current role demands foresight—identifying risks before they materialize, designing legal structures that align with investment goals, and ensuring compliance becomes part of a company’s operational foundation.
Premnath describes the transition as more than a change in job title. In private practice, lawyers typically address problems as they arise, dissecting them once clients bring them forward. As in-house counsel, her focus is on anticipation. “The responsibility is to be proactive and prevent any issues,” she says. “In some ways, the responsibility is also to approach a fact pattern in a much more holistic manner—approach it from all sides and play out potential issues and scenarios.
There is also a constant endeavour to develop systems and processes that can flag these potential issues so that these can be rectified before they compound. Another change is to remember the business aspect of your role. You are stakeholders in your investee companies and are the fiduciaries of your LPs. So, taking conservative positions or merely stating what the law says is ineffective beyond a point. As an internal counsel, it is your responsibility to structure and facilitate decision-making, while furthering the investment objectives and ethos of the fund.”
From Reactive Law to Proactive Compliance Systems
Her early career at Amarchand Mangaldas instilled a pragmatic approach to law. The firm discouraged rigid legal interpretations in favor of commercially viable solutions. This mindset has proven invaluable in venture capital, where speed and adaptability are critical. Premnath balances protection with efficiency, creating processes that introduce objectivity to high-stakes decisions without impeding progress. For early-stage founders, who often lack resources or awareness of compliance needs, this balance is particularly challenging.
Many founders engage legal counsel only during fundraising rounds, leaving gaps in ongoing support. Stellaris addresses this by helping portfolio companies establish internal compliance structures. After closing a deal, Premnath’s team assists founders in drafting policy manuals, hiring legal staff, and implementing systems to monitor regulatory risks. “We build an internal reporting system with the portfolio companies, which helps us and the company track ongoing compliance issues so that we can bring to their attention any issue that requires rectification.”
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The Indian startup ecosystem has undergone rapid transformation in recent years, increasing the pressure on in-house legal teams. Regulators have tightened oversight, investors have become more discerning, and technological advancements have accelerated the pace of change. “The significant leaps in technology and the constantly evolving regulatory framework is perhaps the biggest opportunity and, frankly, also the biggest challenge for the ecosystem,” Premnath says. “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. Even then, it is not enough anymore to understand just what the law says; we need to develop an understanding of the technology, the business and operational aspects and how it ties into the regulatory framework.”
Handling Speed, Risk, and Founder Partnerships
The challenges of her role are clear: reconciling speed with risk, operating in an environment where regulations and technology outpace traditional legal frameworks, and supporting founders who often lack guidance. Yet, Premnath views the opportunity as a partnership. “Working with founders at this early stage and helping them through some of these initial challenges is one of the aspects of the job that I personally find most rewarding. The founders have enough on their plate operationally, and to be able to help reduce any part of that burden and to truly function as their partners on the journey is something we take great pride in.”
Premnath’s career progression reflects a strategic move from transactional law to a position where legal strategy directly influences business outcomes. Before joining Stellaris, she worked in private equity and venture capital, first at Amarchand & Mangaldas and later at Cyril Amarchand Mangaldas. This experience sharpened her ability to align legal advice with investment goals. Her appointment as general counsel in 2024 marked this shift, with her joining Stellaris in 2021.
Legal Strategy as Investment Enabler
This role requires more than technical legal expertise; it demands an understanding of venture capital trends. This dual focus, protecting the fund while enabling its investments, demands a level of commercial insight that goes beyond traditional legal boundaries. For example, when evaluating a startup’s compliance with regulatory frameworks, her team assesses not only whether the structure meets standards but also how to design the deal to minimize future obstacles. Adjustments may involve equity structuring, governance changes, or strategic market entry approaches.
