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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

This Startup Aims to Put Nuclear Reactors on Floating Barges

Just two months after it emerged from stealth, Bluecore Energy raised another $50M for its mission to put small nuclear reactors on floating barges. The company says the portable plants could deliver clean power to ports, data centers and communities, pending review by the NRC and Coast Guard.

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Just two months after it emerged from stealth, Bluecore Energy raised another $50M for its mission to put small nuclear reactors on floating barges.

The company says the portable plants could deliver clean power to ports, data centers and communities, pending review by the NRC and Coast Guard.

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Science & Technology

How will Anthropic’s CEO “pace the frontier” of AI? It’s still a mystery

AI leaders are suddenly talking about “pacing the frontier,” but the specifics are still pretty fuzzy. Equity breaks down why we’re skeptical that the AI industry is actually headed for a slowdown, even as leaders at Anthropic and OpenAI say they want to put the brakes on.

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AI leaders are suddenly talking about “pacing the frontier,” but the specifics are still pretty fuzzy.

Equity breaks down why we’re skeptical that the AI industry is actually headed for a slowdown, even as leaders at Anthropic and OpenAI say they want to put the brakes on.

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Science & Technology

Dario Amodei and other AI leaders want to ‘Pace the Frontier’ but…how? | Equity Podcast

A week after an Anthropic researcher’s doomsday warning rattled the AI world, the company’s CEO Dario Amodei has outlined his plan to “pace the frontier” of AI development. The proposal leans on independent safety evaluators and coordination between AI labs in democratic countries, and it’s already picked up some industry support, along with some pointed…

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A week after an Anthropic researcher’s doomsday warning rattled the AI world, the company’s CEO Dario Amodei has outlined his plan to “pace the frontier” of AI development. The proposal leans on independent safety evaluators and coordination between AI labs in democratic countries, and it’s already picked up some industry support, along with some pointed pushback from Nvidia’s Jensen Huang.

On this episode of TechCrunch’s Equity podcast, Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into whether companies can agree on what slowing down means and who gets to police it. Plus, WordPress parent Automattic’s boardroom coup, and a couple of the week’s biggest deals.

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.

Chapters:

00:00 Intro

1:00 Dario Amodei’s plan to “pace the frontier”

5:03 Jensen Huang pushes back

9:08 Can market forces alone keep AI safe?

12:30 Third-party evaluators: how would they actually work?

15:27 Automattic’s board tries to oust Matt Mullenweg

19:31 Comparing it to OpenAI’s “the blip”

22:54 What’s at stake in who controls WordPress

24:04 May Mobility’s SPAC deal

28:42 Are SPACs back?

29:34 DoorDash invests $425M in Wonder

33:45 Outro

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