This Week in Startups

Navigating SAFEs, Pay-to-Play Rounds & Risks with Becki DeGraw | Wilson Sonsini Startup Legal Basics

Jul 20, 2023

Becki DeGraw, a partner at Wilson Sonsini, specializes in navigating startup legal matters. In this conversation, she breaks down the nuances of SAFE agreements versus convertible notes, shedding light on their roles in funding strategies. They also tackle the repercussions of down rounds and 'pay-to-play' provisions, revealing how they affect founders and investors. Additionally, Becki discusses the critical conflicts that arise in financing and the importance of adhering to established legal frameworks, ensuring smoother operations in the ever-changing startup landscape.

29:27

Creator website

Episode guests

Becki DeGraw

AI Chapters

Episode notes

Intro

2min

The Importance of Standard Legal Practices for Startups

2min

SAFE Agreements vs. Convertible Notes

6min

Navigating Down Rounds in Today’s Startup Landscape

8min

Understanding 'Pay to Play' Financing in Troubling Times

2min

Navigating Financial Conflicts in Startups

9min

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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