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
*
Check Out Wilson Sonsini: https://www.wsgr.com/en/
*
Read LAUNCH Fund 4 Deal Memo: https://www.launch.co/four
Apply for Funding: https://www.launch.co/apply
Buy ANGEL: https://www.angelthebook.com
Great recent interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland, PrayingForExits, Jenny Lefcourt
Check out Jason’s suite of newsletters: https://substack.com/@calacanis
*
Follow Jason:
Twitter: https://twitter.com/jason
Instagram: https://www.instagram.com/jason
LinkedIn: https://www.linkedin.com/in/jasoncalacanis
*
Follow TWiST:
Substack: https://twistartups.substack.com
Twitter: https://twitter.com/TWiStartups
YouTube: https://www.youtube.com/thisweekin
*
Subscribe to the Founder University Podcast: https://www.founder.university/podcast