Market dynamics, RIFs, and AI’s role in law with Becki DeGraw | Wilson Sonsini Startup Legal Basics
This Week in Startups
Jason Calacanis
4.2 • 1.4K Ratings
🗓️ 27 July 2023
⏱️ 31 minutes
🧾️ Download transcript
Summary
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!
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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
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Transcript
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| 0:00.0 | All right, with me again, Becky DeGroff, Melissa Cine, Becky and I have been through many |
| 0:05.9 | legal adventures. Some of them were a lot of elbows being thrown around, Becky and I, |
| 0:12.8 | down there on the paint, pick a role, trying to defend ourselves from craziness. Other times, |
| 0:19.0 | it's just we're shooting three pointers, everything's going in. Sometimes you lose, sometimes you win, |
| 0:24.3 | but you always want to have a great legal coach on your team, and that's Becky for me. Am I |
| 0:29.9 | team? Thank you for all the late nights and weekends when we have to get on crazy phone calls, |
| 0:35.0 | especially the last couple of years. It's been crazy. 2022, bonkers, 2023, less bonkers, |
| 0:43.2 | and it's kind of high a low right now, seeing so many great young startups at reasonable |
| 0:51.4 | valuations, taking their time and being thoughtful, having reasonable expectations of valuations |
| 0:56.8 | and deals getting done. Green shoots everywhere for me as an early stage investor, |
| 1:01.7 | but oh lord, my late stage portfolio is it's literally like I go from |
| 1:07.9 | tending this beautiful garden, Becky, and then I now I'm in like a war zone and bombs are dropping |
| 1:13.3 | everywhere around me. It's like pick the day and I'm not alone. I'm not alone in this. |
| 1:19.2 | What's what's life than like for you these last six months when all of a sudden AI startups |
| 1:25.5 | and everybody can't you know Google, Facebook, Twitter, everybody's laying off and we know |
| 1:31.3 | what happens when that happens. Three or four people start sitting around a cafe and say hey, |
| 1:35.0 | maybe we should start a company since it's so painful to work at some of these big companies |
| 1:39.2 | and they're not higher in anyway. And now we have all these great new startups. The process |
| 1:44.3 | has renewed itself. It's right. The cycle begins again, right? But yeah, I think that's exactly |
| 1:50.7 | right. And we're seeing a lot of activity in that seed and age stay stage where you've got |
| 1:55.8 | really experienced talent that would typically be at perhaps one of the big tech companies and |
| 2:03.2 | they're not and they're deciding to do their own thing now. And that's always been the case, |
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