All right, everybody, welcome back to Startup Legal Basics with my attorney, Becky Degra,

from Wilsonson, seeing me welcome back to the program Becky. Hi, how are you?

Good to be here. I am great. It's great to have you back. You and I do this every year or two.

We look at all the topics that founders face, capital allocators face, and we just try to have

a really thoughtful discussion about them. All of these live at thisweekandstartups.com,

slash basics thisweekandstartup.com slash basics, or you can just search Startup Legal Basics playlist

on YouTube. You'll find it immediately over the past few weeks. You've heard us cover a lot of

topics that are important right now in the year 2023 going into 2024, down rounds, repricing options,

and just generally the trends of 2023. One thing that's new in our industry, Becky,

is the concept of founders being able to sell in secondary. Let's dive into this because when

I started in the industry, VCs had the position 20 years ago, and secondary's were evil,

and that you wanted a hungry founder. You wanted like a really hungry wolf pack that was going

for the IPO, and they had nothing but suffering and pain until that point in time, but something

changed along the way. So maybe you can give us an overview of what changed and how often these

are occurring in some of the best practices. Yeah, absolutely. Happy to. I think you're absolutely

right. You go back 20 years, and these were rare, rare, rare. If we go back five years,

maybe I'll call that period the new normal. During that time,

the secondaries were largely reserved for later stage companies, and we're usually done at a

discount anywhere from maybe 10 to 25% of whatever the last preferred stock round was. But

beginning in the second half of 2020, there was, as we all experienced, this bit of a funding

frenzy that really kicked off and gained momentum through early 2022, and during that time,

evaluation sort, amounts raised soared, firms became more and more company and founder friendly,

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