Conflicts at the Board Level

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

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.

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