Introduction

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

This week in startups.com slash basics with my attorney Becky Wilson from Wilson since see me welcome back to the program Becky. Over the past few weeks you've heard us cover a lot of topics that are important right now in the year 2023 going to 2024 down rounds re pricing options and just generally the trends of 2023. One thing that's new in our industry Becky is the concept of founders being able to sell in secondary. Let's dive into this because when I started in the industry VCs had the position 20 years ago that secondaries were evil and that you wanted a hungry founder.

Today’s show:

Wilson Sonsini Partner Becki DeGraw joins Jason to kick off another series of Startup Legal Basics! In this episode, they break down secondary market transactions, including the evolution of secondaries (00:50), trends in the industry (3:16), critical aspects of Qualified Small Business (QSBS) stock(20:06), and much more!

Time stamps:

(00:00) Wilson Sonsini Partner Becki DeGraw joins Jason (00:50) The increased use of secondary markets (3:16) How companies staying private longer influenced the rise in secondaries (4:25) Determining how much founders should be allowed to sell (6:21) Spending more than a company is worth (9:26) The Pari-Passu concept explained and how it applies to early investors, founders, and employees (10:38) Who gets to sell pre-IPO (12:44) Off the cap table transactions and hypothetical scenarios (18:26) Tender offers and the NASDAQ secondary market (20:06) The critical aspects of qualified small business (QSBS) stock

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