Navigating SAFEs, Pay-to-Play Rounds & Risks with Becki DeGraw | Wilson Sonsini Startup Legal Basics
Todays show:
Wilson Sonsini Partner Becki DeGraw joins Jason on the latest edition of Startup Legal Basics! In this episode, they break down legal standards in the startup ecosystem(2:19), SAFE agreements and convertible notes(5:41), conflicts faced by founders and investors(20:58), and much more!
Time Stamps:
(00:00) Wilson Sonsini Partner Becki DeGraw joins Jason
(2:19) Breaking the box or sticking to widely accepted frameworks
(3:47) General trends and the adoption of safe agreements
(5:41) Differences between SAFE agreements and convertible notes
(10:34) Companies that raised high valuations during a hot market and need to raise funds again
(15:43) The impact of down rounds and pay-to-play provisions on investors, founders, and employees
(20:58) Conflicts faced by founders, existing investors, and new investors
(27:58) Surviving down markets
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