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!

Check out the Legal Basics playlist: https://rb.gy/f0bbv2 Check out Wilson Sonsini: https://wsgr.com FOLLOW Wilson Sonsini: https://twitter.com/wilsonsonsini FOLLOW Jason: https://linktr.ee/calacanis

Becki DeGraw, a partner at Wilson Sonsini with expertise in startup legal matters, joins to discuss vital topics about navigating the current funding landscape. She dives into the shift from high valuations to a more volatile environment, emphasizing the resurgence of growth equity in late-stage rounds. Becki explains anti-dilution provisions, the challenges of down rounds, and critical strategies for re-incentivizing management teams. The significance of strong investor relations and transparent documentation in capital raising and board governance is also highlighted.

Becki DeGraw, a partner at Wilson Sonsini, shares her expertise on the hurdles faced by distressed companies. She delves into the intricacies of leadership during financial turmoil and the implications of board member departures. The conversation highlights crucial 'pay-to-play' scenarios in down rounds and emphasizes the need for thorough market checks in fundraising. DeGraw also discusses the ethical dilemmas board members encounter and the importance of documenting decision-making to mitigate legal risks.

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 * 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 Twitter: ⁠https://twitter.com/TWiStartups⁠ YouTube: ⁠https://www.youtube.com/thisweekin⁠ * Subscribe to the Founder University Podcast: ⁠https://www.founder.university/podcast

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 Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin * Subscribe to the Founder University Podcast: https://www.founder.university/podcast

Check out Wilson Sonsini: https://wsgr.com FOLLOW Wilson Sonsini: https://twitter.com/wilsonsonsini FOLLOW Jason: https://linktr.ee/calacanis

Check out the Legal Basics playlist: https://rb.gy/f0bbv2 Check out Wilson Sonsini: https://wsgr.com FOLLOW Wilson Sonsini: https://twitter.com/wilsonsonsini FOLLOW Jason: https://linktr.ee/calacanis

Becki DeGraw, a partner at Wilson Sonsini and an expert in startup legal matters, joins the conversation to shed light on crucial legal considerations for startups. They discuss common legal oversights like cap tables and employment agreements, highlighting the risks of DIY legal documents. Becki emphasizes the significance of early legal counsel to prevent costly mistakes. The duo also dives into the intricacies of pro forma cap tables and employee stock option plans, preparing founders for potential mergers and acquisitions.

Today’s show: Wilson Sonsini Partner Becki DeGraw joins Jason on the latest edition of Startup Legal Basics! In this episode, they discuss the contrast between late-stage and seed-stage investing (2:52), repricing stock options (5:48), the adoption of AI in the legal industry (23:29), and much more! * Time stamps: (0:00) Wilson Sonsini Partner Becki DeGraw joins Jason (1:19) The increase in tech layoffs and AI startups (2:52) Late-stage vs. early-stage investing and the seed-stage value chart (5:48) Repricing stock options when underwater (14:05) Disclosing revenue, burn rate, and growth rate (18:08) RIFs and knowing your employees (20:57) The long-term effects of remote work (23:29) The use of AI and chatbots in law * Check out Wilson Sonsini: https://www.wsgr.com * 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 Twitter: https://twitter.com/TWiStartups YouTube: https://www.youtube.com/thisweekin * Subscribe to the Founder University Podcast: https://www.founder.university/podcast