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

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