This Week in Startups
This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.
Jason Calacanis
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Legal must-haves before raising capital with Becki DeGraw | Wilson Sonsini Startup Legal Basics

Aug 22, 2024 • 21 mins

Wilson Sonsini Partner Becki DeGraw joins Jason on the latest edition of Startup Legal Basics! In this episode, they break down common legal oversights, risks of DIY legal documents, pro forma cap tables & ESOPS, and much more!

Key Points

  • Securing seasoned legal counsel early in the startup process is crucial to avoid costly delays and complications during significant financing rounds.
  • Properly maintaining a clean and accurate cap table, IP assignments, and employment agreements are essential steps to ensure smooth investor transactions and prevent deal-killing issues.
  • Founders must familiarize themselves with key financial terms and scenarios, such as dilution, liquidation preferences, and pro forma cap tables, to effectively negotiate and align with investor expectations.
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