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4 legal mistakes that can kill your startup (before you even raise) l Build Mode

Setting up a sound legal foundation could be what saves a startup down the line. A missing founder vesting agreement, an unclear IP agreement, or a messy cap table can derail fundraising, spark co-founder disputes, or even kill an otherwise promising company before it has a chance to scale. In this episode of Build Mode,…

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Setting up a sound legal foundation could be what saves a startup down the line. A missing founder vesting agreement, an unclear IP agreement, or a messy cap table can derail fundraising, spark co-founder disputes, or even kill an otherwise promising company before it has a chance to scale.

In this episode of Build Mode, host Isabelle Johannesen sits down with Kristina Subbotinai, founder and CEO of Lesxy and former startup attorney at Cooley, to break down the legal fundamentals every founder needs to get right.

Chapters:
00:00 – Intro: The Legal Mistakes That Kill Startups
01:37 – Why Kristina built Lexsy
03:58 – The Legal Foundations Every Startup Needs
08:22 – How to Find the Right Startup Lawyer
10:21 – The Four Non-Negotiable Legal Decisions
17:33 – What Investors Look for During Due Diligence
20:04 – SAFE Notes vs. Priced Rounds
22:18 – Negotiating Valuation Without Losing Control
25:25 – Board Seats, Investor Rights, and Hidden Term Sheet Traps
30:51 – Should Founders Use AI for Legal Advice?
31:04 – How Founders Build Leverage in Fundraising
35:48 – The Terms That Can Destroy Founder Wealth
37:01 – The Craziest Startup Legal Story Kristina Has Ever Seen

Hosted by Isabelle Johannessen. Produced and edited by Maggie Nye. Audience development led by Morgan Little. Special thanks to the Foundry and Cheddar video teams.

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4 Comments

4 Comments

  1. @breaktherules6035

    August 6, 2026 at 4:09 pm

    Excellent insights!!! THANK YOU!!!

  2. @datacoderX

    August 6, 2026 at 10:43 pm

    Unfiaxble legal errors. Ok.

  3. @sdmarlow3926

    August 6, 2026 at 11:25 pm

    A c-corp isn’t a legal company until someone buys shares, so a founder is going to do that the first week. A 5 year vesting schedule seems standard (cliff + 4). They also need to file the 83(b) election with the IRS while those shares are less than a thousand dollars (ex; $500 for 5 million shares). Copy of the filing needs to be part of corp record. IP assignment is also a basic workplace policy (though it’s interesting to look at ZeniMax vs Oculus, as Carmack was public about his efforts to build the VR tech/software while at id software, even on-site). Doubly so for a technical founder. For a lot of VC’s, you just need to be big enough to be purchased by a bigger fish at a high than normal valuation, so I don’t agree with the Delaware incorporation idea. Worse, founders have a way of being the first one shown the door once there are signs of market fit, or demand by VC’s/directors that the company pivot in a direction the founder doesn’t want. A Delaware court system will favor the board members. Not legal advice, but dilution and director seats are a priority long before you get to series c or d funding rounds that might require switching to Delaware, or maybe a decade or more before you IPO. Not a startup killing issue.

  4. @KristinaSubbotinaEsq

    August 7, 2026 at 2:02 pm

    Thank you for having me!

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Science & Technology

What Meta’s Settlements Means for TikTok and Youtube

Meta’s $18 billion settlement could have consequences far beyond Meta. Equity’s Kirsten Korosec and Sean O’Kane break down how the deal could put pressure on YouTube, TikTok, and other platforms to play by similar rules and whether they’ll actually follow Meta’s lead. Listen to the latest episode of Equity wherever you get your podcasts.

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Meta’s $18 billion settlement could have consequences far beyond Meta.

Equity’s Kirsten Korosec and Sean O’Kane break down how the deal could put pressure on YouTube, TikTok, and other platforms to play by similar rules and whether they’ll actually follow Meta’s lead.

Listen to the latest episode of Equity wherever you get your podcasts.

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Science & Technology

Why Nvidia is Ready to Pay $13B for Hugging Face l Equity

Earlier this week, Meta agreed to pay $18 billion and make sweeping changes to how minors access its social networks to settle a lawsuit brought by 29 states. But the eye-popping settlement figure wasn’t what caught the attention of the Equity podcast team. Instead, it was what Meta did next. The social media giant sent…

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Earlier this week, Meta agreed to pay $18 billion and make sweeping changes to how minors access its social networks to settle a lawsuit brought by 29 states. But the eye-popping settlement figure wasn’t what caught the attention of the Equity podcast team. Instead, it was what Meta did next. The social media giant sent an open letter to TikTok and YouTube asking the companies to join it in setting industry-wide standards for teens, including daily time limits, blocking access to apps at night, and restricting notifications during school hours.

But will these other companies follow? The Equity team doesn’t think they will.

On this episode of TechCrunch’s Equity podcast, Rebecca Bellan, Kirsten Korosec, and Sean O’Kane dig into the Meta settlement, rising investor interest in robotics startups, and the reported Nvidia and Hugging Face deal that’s in the works.

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and wherever you get your podcasts. You also can follow Equity on X and Threads, at @EquityPod.

Chapters:
00:00 — Meta’s $18B Teen Safety Settlement
03:39 — Will Meta’s New Rules Actually Protect Teens?
08:55 — The Problem With Age Verification
11:11 — Robots Are Chasing Their ChatGPT Moment
16:22 — The Race to Build Smarter Robot Brains
19:34 — What Happens When Robots Work Alongside Humans?
21:41 — Waymo and Zoox Test Drivers Are Getting Hurt
23:38 — Gatik Raises $200M for Driverless Trucks
26:38 — Could Nvidia Buy Hugging Face for $13B?
29:18 — Why AI Infrastructure Is Becoming an Acquisition Target

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CNET

Surprise Macs?! This Is Not Apple’s Typical Playbook | One More Thing

Apple has news to “surprise” us on Sept 9, but what do you mean there’s a new Mac Mini with M6 chip suddenly on sale? Don’t count on a typical September from Apple. Bridget Carey explains why Apple couldn’t wait on new Macs, but we keep waiting for the big iPhone event. Tim Cook’s final…

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Apple has news to “surprise” us on Sept 9, but what do you mean there’s a new Mac Mini with M6 chip suddenly on sale? Don’t count on a typical September from Apple. Bridget Carey explains why Apple couldn’t wait on new Macs, but we keep waiting for the big iPhone event. Tim Cook’s final week as Apple CEO is full of unexpected news: Walmart is finally accepting Apple Pay.

You can find the products mentioned in this video linked below
Apple 2026 Mac mini Desktop Computer with M6 chip
*Cnet may get commission on this offer.

Read more about it on CNET.com
Win an Apple Watch – Round 3 of CNET’s Guessing Game Is Live Now:

Timecode Chapters:
0:00 Intro
0:20 New M6 chip and new M5 Ultra chip
0:26 Apple Polishing Cloth gets a price cut
0:38 Tap to pay comes to Walmart
1:17 September 9 is iPhone announcement date
1:31 New Apple products coming soon include iPhone 18 Pro and possible folding iPhone
1:49 New Mac Mini with M6 and M5 Pro chips
2:21 New Mac Studio with M5 Max and M5 Ultra chips
2:56 Mac shortages
4:01 Changing times for Apple
4:13 Apple launches Mac Mini with social-first video announcement
4:27 Walmart now accepts Apple Pay
4:59 Tim Cook’s final bow as Apple CEO
5:09 Win an Apple Watch in CNET’s Big Guessing Game

Video Credits:
Host: Bridget Carey
Scripted by: Bridget Carey
Producer: Carly Marsh
Camera: Carly Marsh, CNET Archival
Video Editor: Carly Marsh
Thumbnail Designer: Tharon Green

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