The Ups and Downs of Investing

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I started investing as an angel as a scout for Sequoia in 2009 10 right after the great financial crisis I only knew an up market. Down rounds will be well first of all like it was like 40% of all the private company financing that we see and that's both on the company on the investor side. And then when we saw like pay to plays being used in down rounds that increased from something like 15% like 40%. Huh those things growing 20% a year instead of 3x where this thing's not growing. What is it actually worth it maybe it has to be sold so this all is going to happen in the next 12 months. It's going to get crazy it

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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