This Week in Startups Creative Structures w/ Becki DeGraw | Wilson Sonsini Startup Legal Basics
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Sep 4, 2025 Dive into the intriguing world of startup funding as Becki DeGraw discusses the divide between 'have' and 'have-not' companies. Learn about creative, off-menu legal structures and the rising importance of founder proxies. Explore how the competitive landscape is shaping valuations and deal terms. The resurgence of cryptocurrency brings legal implications, while diligence is becoming a lost art in high-pressure deals. This conversation promises insights crucial for founders and investors navigating today's dynamic market.
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Haves vs Have-Nots Market Divide
- Hot startups face very different financing dynamics than the rest of the market right now.
- Multiple term sheets and reduced diligence recreate a 2021-style competitive fundraising environment.
Treat Early Financings As Crucible Moments
- Treat your first priced rounds and board formation as crucible moments that define your startup's future.
- Prepare counsel and governance early; these decisions materially affect long-term outcomes.
Investor FOMO Drives Concessions
- 'Haves' get founder-friendly terms because investors compete to access them.
- Investors often drop their standard playbook and accept looser diligence and governance to secure allocations.