The Advantages of High Valuation in a Crazy Market

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The later stage market is largely significantly shut down right. The closer you get to IPO stage the less deals that are happening. Even doing like a series B and C even if you're still fairly far away from an IPO they're just more difficult to do right now investors are looking for more metrics. A lot of those companies have been able to use the money that they raised in 2021 to kind of just on the sidelines right now. But then I'll be in said right like there's a whole there's another dynamic here that's really interesting to that we haven't seen in the past when we've had these type of slowdowns.

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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