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Navigating SAFEs, Pay-to-Play Rounds & Risks with Becki DeGraw | Wilson Sonsini Startup Legal Basics
This Week in Startups
Conflicts at the Board Level
When Delaware courts look at conflicts at the board level. They are very broadly defined. Absolutely if I'm an investor and I'm setting on your board and I'm going to participate in the financing. That's a clear conflict but even if I am not going to participation in the financing, there is still that issue of whether or not they're willing to put money in. It's usually the company needs money and whoever is willing to put the money in is driving that initial conversation.
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