The Importance of Recaps

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The term start getting aggressive and depending on what the goals of the company is like you know the kind of example we've been using at this billion dollar valuation company that's getting cut down to 200 million. The good news here is if you're having those discussions people still believe in you and your company they just believe in it at a different price. So I think this is a good place for us to pause in the next episode we'll talk about all this options reprising, how to take care of the employees and some of these other technical issues Becky thank you again for talking me through the other side of the coin.

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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