This Week in Startups

Fundraising hurdles and M&A slowdown with Becki DeGraw | Wilson Sonsini Startup Legal Basics

Sep 5, 2024

24:57

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In this discussion, Becki DeGraw, a partner at Wilson Sonsini specializing in startup legal matters, dives into the recent downturn in fundraising and the hurdles startups face. She highlights shifting investor expectations and the complications of mergers and acquisitions in the current regulatory climate. Becki also explains the challenges of compliance costs and cybersecurity for tech companies, along with innovative legal strategies for startups to navigate this complex landscape. It's a must-listen for anyone in the startup world!

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Quick takeaways

Startups are navigating a challenging fundraising landscape, requiring cost-cutting measures and realistic growth expectations to attract investors.

Regulatory pressures are creating hesitance in M&A activities, challenging startups to adapt their data policies and compliance strategies.

Deep dives

Challenges in Fundraising for Startups

The fundraising landscape for startups has become increasingly complex, particularly in the wake of significant market changes. Many companies are encountering obstacles as investors expect them to cut costs and extend their run rates instead of chasing rapid growth. This shift has created a paradox where companies that followed advice to stabilize their finances are returning to the funding arena with less impressive growth metrics. As a result, while some founders aimed for sustainable practices, they find themselves facing down rounds or flat rounds, making it harder to attract investment compared to previous years.

Intro

2min

Navigating Fundraising Challenges in a Slow Market

3min

Navigating Valuation Challenges and Creative Investment Solutions

4min

Navigating M&A Challenges

15min

Navigating Board Meeting Confidentiality and Legal Risks

2min

Todays show: Wilson Sonsini Partner Becki DeGraw joins Jason on the latest edition of Startup Legal Basics! In this episode, they break down fundraising trends (1:33), the challenges of M&A (7:39), and the evolving regulations for tech companies (13:29).

Timestamps:

(00:00) Wilson Sonsini partner Becki DeGraw joins Jason

(1:33) Fundraising trends and investor expectations

(3:57) Breakeven points and penny warrants

(7:39) M&A slowdown and regulatory challenges

(13:29) Proposals for M&A regulation reform

(16:08) Compliance costs and cybersecurity for startups

(19:58) Legal strategies for startups and data policies

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